Tyre maker bullish on two-wheeler business, to set up its fifth plant in India in Andhra Pradesh.
05 Jul 2017 | 5217 Views | By Mayank Dhingra
Apollo Tyres is going ahead with plans to make new investments in FY2017-18. Speaking today at the company’s AGM in Kochi, Onkar S Kanwar, chairman, MD and CEO, Apollo Tyres, announced new capital infusion in FY2018 towards the expansion of manfacturing capacity at its existing manufacturing facilities in the country.
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Apollo Tyres is going ahead with plans to make new investments in FY2017-18. Speaking today at the company’s AGM in Kochi, Onkar S Kanwar, chairman, MD and CEO, Apollo Tyres, announced new capital infusion in FY2018 towards the expansion of manfacturing capacity at its existing manufacturing facilities in the country.
While he did not reveal specific investment numbers, the chairman provided updates on the completion of the first phase of its capacity ramp up for truck and bus radials, at its Chennai manufacturing unit. The work for its latest and the fifth facility in the country, in the Chitoor district of Andhra Pradesh is also reported to be going in full swing, with the new plant aiming to cater solely to the two-wheeler market.
He said that with demonetisation, Brexit and a change in the presidency in the US in FY2016-17, the company had to face adversities, with a lot of its volumes getting impacted due to the low import duties on rubber from China, which in turn has led to losing the majority of the market share to the low-cost Chinese products.
Apollo Tyres is now exploring enhancing its product portfolio to include other vehicle segments like agriculture and mining to counter-balance the impact.
The company also continues to expand its global footprint, with the recent commencement of its operations in Hungary, rolling out relevant and high quality products for the European markets. It also aims to focus its R&D activities and develop new products for the ASEAN, Middle-East and the American markets.