New Delhi, Aug. 6: Apollo Tyres Ltd plans to invest 500 million euros in its proposed facility in eastern Europe.
According to company officials, the unit will be the company’s first outside the country to be commissioned in 2017-18.
“Where exactly the plant is to come up has not yet been decided. We are still negotiating with eastern European countries. This is the first time Apollo is looking at a greenfield facility outside India,” vice-chairman and managing director Neeraj Kanwar said. “The investment will be around 500 million euros,” he added.
The plant will have a capacity of 5.5 million units of passenger car tyres and 6.75 lakh units of heavy commercial vehicle tyres per annum.
In India, Apollo has its largest facility in Limda in Gujarat, two plants in Kerala and one near Chennai.
Officials said the four plants would have a combined capacity of 1,400 tonnes per day.
“The company will also invest Rs 1,500 crore in its Chennai plant, where the capacity will be enhanced to 9,000 units per day from 6,000 units per day. In Kerala, where Apollo has two plants at Kalamassery and Perambra, the company will invest Rs 500 crore in the next 2-3 years,” Kanwar said.
The company has added a new product category — off highway tyres — and is producing 30 tonnes at the Kalamassery unit.
“The Kalamassery unit, set up in the 50’s, needs to be converted to produce new product category and discussions on wage and productivity issues are on with the labour unions,” Kanwar said.