Seventh Apollo Tyres Plant to be set up in Andhra Pradesh With a total of six plants in India and abroad, this new Apollo Tyres Plant will be its seventh plant.
Apollo Tyres Limited is all set to expand the business by introducing another plant by the end of this year. With a total of six plants in India and abroad, this new Apollo Tyres Plant will be its seventh plant. This new plant will be set up in Andhra Pradesh. The President of Asia-Pacific, Middle East and Africa, Apollo Tyres, Satish Sharma said that the introduction of a new plant will become a contributor for the company to become the top tyre manufacturer in the country by the year 2021. He commented on this further adding, “We expect to begin production before the year-end from the new plant in Andhra Pradesh where we are investing ₹1,800 crore in the first phase of the project. This will not only add big capacity and consolidate our position in the country, but also step up exports.” The company’s other manufacturing plants are located in India as well as abroad. With two plants located in Kerala and one in Gujarat, its largest plant is in Tamil Nadu. Along with this, two of its plants are located in the Netherlands and Hungary. The introduction of the seventh will be in Andhra Pradesh.
If we talk about the production capacity of the brand, the four plants in India have a production capacity of 1700 tonnes per day. The manufacturing unit in the Netherlanhasave a production capacity of 195 tonnes per day and the Hungary plant 100 tonnes per day. This amounts to a total capacity of about 2000 tonnes per day. Satish Sharma said that the country’s tyre market is around Rs.53000 crore, which is still growing by 8- 10 per cent. He told that the market of two-wheeler tyres is around Rs.10000- 12000 crore in the country. According to him, except for the two-wheeler market, Apollo Tyres have a market share of about 25 per cent, which is expected to go up over the next two-three years, taking them to the top position by 2021. According to Sharma, with the introduction of new cars in the country, the company expects the sales volume to increase. There have been a number of cars lined up, which includes Harrier from Tata Motors, WagonR from Maruti, and an SUV from Kia. He also explained the reason behind the relatively slow growth of the automotive sector in the past few days. He said that it happened due to various external factors such as deficit monsoon in few States, high fuel prices, etc. Giving an outline to the business plans of Apollo Tyres, and how the country’s tyre industry is shaping up, Sharma said, “We have established strong relationships with OEMs, which account for about 30 per cent of the volumes and the rest comes from the after-market. We expect to consolidate our relationships with OEMs.” The brand has a lot of expectations from the upcoming plant. This new plant can surely help the brand reach the top.