Apollo to Increase PCR Tyre Capacity by 50%

On December 13 Apollo Tyres stated it would invest more than one billion rupees to increase its PCR tyre capacity from 300,000 to 450,000 units per year. According to company COO and joint managing director Neeraj Kanwar, this expansion programme would be centred on Apollo’s Limda factory in the state of Gujarat, with some further small capacity increases also carried out in its other facilities in India and South Africa.

“We have earmarked Rs 108-crore (£13.4 million) investment for the next fiscal to increase our production capacity to 4.5 lakh (450,000) tyres per annum. This will suffice the expansion plan given that this will be an expansion of existing capacity as opposed to creating greenfield site,” Kanwar was quoted by India’s Sify news as saying. “We will embark on capacity expansion in the next fiscal and it will be completed by the end of the fiscal.” Kanwar added that the company would use internal accruals to fund the proposed expansion.

In response to the question as to whether Apollo would pursue inorganic growth, Kanwar said if any such opportunity comes up within India, the company would “surely consider it very seriously” and determine whether it fitted Apollo’s corporate plans and vision.