Apollo Tyres said it will be investing close toRs 1800 crores to set up a new manufacturing facility in Chittoor district of Andhra Pradesh.
The resources earmarked are for developing the first phase of the unit, for which the company has procured 200 acres of land from the state government.
The construction work on the project will begin within the next six months and it will start rolling out tyres in the following 24 months.
The company plans to start with manufacturing passenger vehicle tyres at this facility, owing to the growing demand in this segment, and will later expand to other product categories.
Andhra Pradesh Chief Minister, N Chandrababu Naidu, said the facility will generate employment opportunities for the people of the state.
“I am very delighted to have Apollo Tyres, the Indian multinational, after setting its world-class facilities in Chennai and Hungary recently, now setting-up a state-of-the-art manufacturing unit in Andhra Pradesh. This will provide direct jobs to nearly 700 people and to many more indirectly, in the first phase. The employment opportunity would further get increased when the company expands in the future,” Naidu said.
Apollo Tyres chairman Onkar S Kanwar said, “While planning for this state-of-the-art manufacturing facility, we have provisioned for the future capacity expansion requirements in India for the next 5 years and more.”
Apollo Tyres currently has four manufacturing facilities in India – two (including a leased facility) in the rubber-producing state of Kerala, and one each in Gujarat and Tamil Nadu. Outside India, the company has a manufacturing facility each in The Netherlands and Hungary.