Published On:July 3 2014
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Apollo Tyres to invest Rs. 2,050 crore to upgrade Chennai plant facilities.
Leading tyre maker, Apollo Tyres announced that it has decided to increase the capacity of its Chennai plant, shifting product portfolio of its Kalamassery plant in Kerala.
The company's board approved the expansion and product re-jig plans that would require an investment of around Rs. 2,050 crore, a statement from Apollo Tyres said.
As per the plan, the capacity of the Chennai plant, established near the industrial hub of Oragadam, will be increased to 8,900 truck-bus radial tyres a day, from the present 6,000 tyres per day. The expansion is being undertaken due to the improved tyre demand scenario, the company said. Further, the Chennai plant has shown ability to generate returns ahead of projections, the statement added.
Meanwhile, the company has decided to convert its Kalamassery plant, located in the rich rubber yielding region in Kerala, to produce specialty and industrial trials, as against the present scheme of producing bias truck tyres. The move is likely in tune with the changing market preference for radials.
The board also authorized the company to raise funds to the extent of $200 million , in one or more tranches through instruments that may include rights issue, private placements, QIP or FCCBs among others. The company has also been cleared to raise the FII investment limit in the company’s share to 45 per cent, from 40 per cent at present.