Apollo Tyres Increases 2009 Capex

Apollo Tyres has apparently decided to up its 2009 capital expenditure from Rs 7 billion to 9 billion (£113.0 million). Rs 7 billion (£87.9 million) of these funds will go towards more than doubling capacity at its new Chennai facility, which is anticipated to come on-stream later this year. The remaining Rs 2 billion will be used for expanding production at the company’s Baroda plant in India’s Gujarat state.

The company is said to have decided to increase the amount set aside for capital expenditure as it anticipates demand for commercial vehicle tyres to return from its 30 per cent slump and increase during the second half of the year. Output at the Chennai plant will now jump to 3,000 truck and bus tyres per day instead of the 1,100 units previously planned for.