Acquisition to boost renewable energy at Apollo’s Chennai plant

As reported on 18 January, Apollo Tyres Ltd. has acquired a 27.2 per cent shareholding in a renewable energy firm, Cleantech Solar subsidiary CSE Deccan Solar. The tyre maker says the reason it did so is to gain a guaranteed annual supply of 40 million units of electricity for its manufacturing facility in Chennai. CSE Deccan Solar expects to begin delivering in July 2022, and this electricity will account for around 20 per cent of the plant’s total requirements and boost the total proportion of renewable energy to more than 30 per cent.

“Green has become a matter of habit at Apollo Tyres,” says Sunam Sarkar, president and chief business officer, Apollo Tyres Ltd. “This investment to secure solar power for our Chennai facility, is one of the several initiatives that we are undertaking towards a sustainable future. The solar power that we are securing with this investment, will help us become self-sufficient for our power requirements for critical equipment, and strengthen our commitment towards reduction of carbon emissions.”

Lowering costs the green way

CSE Deccan Solar will deliver offtake electricity, an arrangement that Apollo Tyres views as optimal considering that solar power is produced for only a few hours every day and no storage facility is available for the generated electricity.

Apollo Tyres also points out that solar power price rates are fixed for the next two decades in India and are currently lower than the per unit rate of State Electricity Board, therefore the company anticipates cost reductions through this deal with Cleantech Solar.

The Chennai plant possesses an installed capacity to produce around 900 tonnes of tyres per day in Chennai, with a production programme that includes passenger vehicle tyres as well as light, medium and heavy commercial vehicle tyres.