Apollo Tyres is investing Rs5.25 billion in a new manufacturing plant it plans to build in Sri City, in the state of Andhra Pradesh in India. The new facility will have a production capacity of 3 million tyres per month.
To be spread across 250 acres, the manufacturing facility would be the company’s fifth in the country and would produce tyres for motorcycles, scooters and pickups.”We would have ground breaking ceremony in January and within a year, it would be in production,” said Apollo Tyres Chairman Onkar S. Kanwar.
The new plant will also be a foreign direct investment (FDI) by one of Apollo Tyres’Singapore-based subsidiary company, Apollo Tyres Holdings (Singapore) PTE Ltd, Kanwar added.
Apollo Tyres has already signed a memorandum of understanding with the state government in the presence of the Chief Minister of Andhra Pradesh, Nara Chandrababu Naidu. The group also has plans to invest in other sectors in the state, like hospitals and logistics.
“We intend to put up a hospital in Andhra Pradesh at its capital Amravati… Apart from that, we are also looking for logistics, we have another company Apollo Logi Solutions,” said Kanwar.
Apollo Tyres has two plants in Kerala and one plant each in Tamil Nadu and Gujarat. The company has international manufacturing presence with one plant in the Netherlands and another facility being set up in Hungary.