Apollo Tyres Investing Rs 2700 Cr To Double Its Chennai Plant Capacity

Apollo Tyres is all geared up to accomplish its vision of ‘Building Leadership in India by 2020’, and to materialise the same it plans to double the capacity of its Chennai facility with a whopping investment of INR 2700 crore. Mr. Satish Sharma, Apollo Tyres, President, Asia Pacific, Middle East and Africa stated that the Gurugram-headquartered tyre firm will increase the production from current 6000 units per day to 12000 units per day. Starting from October 2016, this capacity increment will happen in next two years with an investment of INR 2700 crore. The capacity push was planned long back and unexpectedly by the time company made its investment in Chennai it was in the year 2008, when the recession was at its peak, Mr. Sharma explained.

The Chennai facility started to roll out the commercial production of Apollo Tyres in 2010. The present per day capacity of Truck and Bus Radials (TBRs) is 6000 tyres, which boils down to 1.80 lac tyres per month. And after doubling the capacity at Oragadam manufacturing plant it will reach to 12000 tyres per day or 3.60 lac tyres per month. The enhancement at the tyre manufacturing plant will lead to an increased export of 15 percent from the existing 10 percent. The leading tyre maker is also looking to penetrate more into the rural arena with a proposed two-wheeler radial tyre manufacturing unit in Baroda, Gujarat.

He further added that in the two-wheeler segment Apollo Tyres is at a nascent stage, after the official foray in May this year, and have been selling at nearly 1 lac units. With a target to end this year with 3 lac units, he was confident of achieving 70-80 percent of the target with sales of 2-2.50 lac units.

On the commencement of two-wheeler radial tyres factory at Baroda, he stated that the company would probably begin manufacturing in 2017. Besides two-wheeler, it also plans to establish a separate assembly line to produce SUV tyres at its Baroda unit, which will hold a capacity to roll out 3000 units per day.

The leading tyre and radial manufacturer is concentrating to amplify its market share from present 27 percent to 30-33 percent in the commercial vehicle sector. Moreover, in the passenger car segment and agriculture segment it holds a market share of 17 percent and 20 percent approx in that order.