Apollo Tyres to in­vest Rs 1,800 crore for new PCR plant in Andhra Pradesh

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Apollo Tyres is set­ting up a Rs 1,800-crore tyre fac­tory in Andhra Pradesh. The unit will be its sev­enth glob­ally and will come up over a 200-acre site in Chin­na­pan­duru vil­lage near Sri City in Chit­toor district. The fa­cil­ity will pro­duce pas­sen­ger car ra­dial (PCR) tyres ini­tially. The ini­tial ca­pac­ity will be about 5.5 mil­lion tyres per year and will serve both do­mes­tic and ex­port mar­kets. The con­struc­tion work will start in 6 months, and the fac­tory is ex­pected to be up and run­ning in 24 months. The fac­tory will pro­vide di­rect em­ploy­ment to 700 peo­ple.

The foun­da­tion stone for the project was laid re­cently by the State Chief Min­is­ter N Chan­drababu Naidu, in the pres­ence of Onkar S Kan­war, Chair­man, and Neeraj Kan­war, Vice-Chair­man and Man­ag­ing Di­rec­tor, Apollo Tyres.

“While plan­ning for this state-ofthe-art man­u­fac­tur­ing fa­cil­ity, we have pro­vi­sioned for the fu­ture ca­pac­ity ex­pan­sion re­quire­ments in In­dia for the next 5 years and more. We are thank­ful to the Andhra Pradesh Gov­ern­ment for ex­cel­lent co­op­er­a­tion so far, and are con­fi­dent of get­ting the same go­ing for­ward as well to­wards the smooth con­struc­tion and man­age­ment of this fa­cil­ity. As a re­spon­si­ble cor­po­rate, we would be more than happy to con­trib­ute to­wards mak­ing Andhra Pradesh a ‘sun­rise’ state,” Onkar S Kan­war said.

“We are fac­ing some short­ages for PCR re­quire­ments. Five years ago, we were a small player in the PCR seg­ment. But to­day, we are Num­ber 2 in In­dia in the seg­ment with strong sup­plies to ve­hi­cle mak­ers and af­ter-mar­ket de­mand. The brand has strength­ened it­self over th­ese years in the do­mes­tic mar­ket, while our ex­ports have also been grow­ing,” Neeraj Kan­war said.

In 2016-17, the PCR seg­ment ac­counted for 39% of the com­pany’s rev­enues, which stood at Rs 13,060 crore. He said the com­pany did not have land at Ora­gadam man­u­fac­tur­ing site near Chen­nai to grow fur­ther as it had al­ready ex­panded fully there with a cu­mu­la­tive in­vest­ment of Rs 5,000 crore.

“In Chen­nai, we are pro­duc­ing about 900 tonnes per day. But in this new unit in Andhra Pradesh, we will be pro­duc­ing 180-200 tonnes a day in the first phase,” he said.

In the next phase of ex­pan­sion, may be af­ter 3-4 years, the com­pany may look at mak­ing com­mer­cial ve­hi­cle and off-high­way tyres. Kan­war also said Apollo Tyres was in the process of rolling out high-end mo­tor­cy­cle tyres out of its Vado­dara fa­cil­ity.

Apollo Tyres cur­rently has 4 man­u­fac­tur­ing fa­cil­i­ties in the coun­try — 2 (in­clud­ing a leased fa­cil­ity) in Ker­ala, and one each in Gu­jarat and Tamil Nadu. It has a fac­tory each in The Nether­lands and Hun­gary.

N Chan­drababu Naidu, CM, Andhra Pradesh seen along with Onkar S Kan­war, Chair­man, Apollo Tyres, Neeraj Kan­war, Vice Chair­man & MD, and Satish Sharma, Pres­i­dent, Aia Pa­cific, Mid­dle East & Africa, Apollo Tyres dur­ing foun­da­tion stone lay­ing cer­e­mony.

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