Apollo Board approves Euro 58 million expansion projects

ERJ staff report (DS)

Gurgaon, India -- In approving the company's Q3results, the board of Apollo Tyres approved investments of Rs 3600 million (Euro 58 million) for various green and brown field projects to be implemented in India.

The projects include investment of Rs 2200 million for construction of a, "world class green field radial facility in the recently acquired 135 acres of land in the Oragadam Industrial Park, outside Chennai city in Tamil Nadu." This investment is in the first phase of the project, to be completed in the next 18 months.

Allocation of over Rs 1000 million for the setting up of a 10 tonnes a day Off-The-Road tyres or OTR facility at the company's flagship manufacturing unit in Limda, outside Baroda city in Gujarat. This is an extension of the company's product line, which will begin with the production of cross-ply OTR tyres and then extended to radial OTRs.

Apollo reported net sales of Rs 12.4 billion up 14 percent from Rs 10.8 billion for the nine months ended 31 December 2007. Net profit was Rs 820 million up 165% from Rs 308.6 million