Apollo Tyres’ Hungary greenfield project is on trackand will roll out the first tyre from the new factory by the first quarter of 2017. The company also said that it will invest more than EUR400 million for the new unit.
“Our globalisation journey continues as the Hungary greenfield plans are on schedule and we will roll out the first tyre in the last quarter of the current fiscal. With the plant, we will be able to serve the European market with a larger product portfolio. Our game plan for Europe includes increasing the dealer network and the acquisition of the Germany-based reifencom GmbH last year fits well into that strategy,” Onkar S.Kanwar, Chairman and Managing Director, said in the company’s latest annual report.
The company is also engaging with leading OEMs in Europe and will also leverage its OEM associations in India.To make an entry in the OEM market, the company has opened a new R&D office in Frankfurt, to be closer to its customers in the region.
Apollo will look at consolidating its position in existing markets, seek new markets and new segments. It will continue to invest in both the Apollo and Vredestein brands and capacity expansion via greenfield factories and brownfield expansions. It will also scan other growth opportunities.
“We envision the company to be a premier tyre company with a diversified and multinational presence,” said NeerajKanwar, Vice-Chairman and Managing Director.
For the Asia-Pacific, West Asia and Africa operations, the Chennai plant will provide additional capacities in the fast growing truck and bus radial segment.The company remains bullish and expects double-digit growth from these markets.