Apollo Announces Results, Projects

Gurgaon, India, January 15, 2008: The board of directors of Apollo Tyres Ltd, on January 15 announced the company’s unaudited results for the third quarter of the financial year 2007-08. The board also approved investments of Rs 3.6 billion (£46.8 million) for various green and brown field projects to be implemented in India.

Net sales for the companies India & overseas operations closed at Rs 12.4 billion (£161.1 million) up 14 per cent £140.3 million) from Rs 10.8 billion. Operating profit rose by 60 per cent, and net profit, at Rs 820 million (£10.7 million), increased by 165 per cent.

Commenting on the results, Onkar S Kanwar, Apollo chairman & managing director, said: “This is the kind of steady growth that we are looking to maintain in India, South Africa or any other market that we work in, in the near future. Our strength in manufacturing and people are assets, and Indian companies need to leverage these to ensure that we build Brand India as a quality manufacturer of products and services.”

Projects approved by the board of directors include an investment of Rs 2.2 billion (28.6 million) for construction of a world class greenfield radial facility on the recently acquired 135 acres of land in the Oragadam Industrial Park, outside Chennai city in Tamil Nadu. The first phase of this project is expected to be completed in the next 18 months. A sum of Rs 1 billion (£12.9 million) is also being set aside to set up a 10 tonne a day OTR tyre facility at the company’s flagship manufacturing unit in Limda, outside Baroda city in Gujarat. This is an extension of the company’s product line, which will begin with the production of cross-ply OTR tyres and then extend to radial OTRs. A third project will see Rs 390 million (£5 million) for the setting up of an additional 8 megawatt wind energy project in Gujarat, creating fresh capacity for 7.5 megawatts of wind power generation. This is expected to compliment the existing 8 megawatt wind generation facility in Gujarat for the Limda plant.

Commenting on the investments Mr Onkar S Kanwar said, “Apollo Tyres is currently in a growth mode and the investments are part of our ongoing product and capacity expansion plans for our India operations. This is a crucial market for us and we will continue to ensure both market and customer demands are fulfilled at the earliest possible. The OTR products will fill a yawning demand-supply gap in the Indian market. While the wind power generation project is part of our plans to ensure a steady movement to non-fossil fuel or least polluting sources of energy, wherever possible and available.”