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January 09, 2018 01:00 AM

Apollo lays cornerstone for 5th Indian plant

Tire Business Report
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    Apollo Tyres Twitter (@apollotyres)
    Participating in the foundation stone ceremony are (from right) Shri N Chandrababu Naidu, chief minister, Andhra Pradesh state; Apollo Tyres Chairman Onkar S. Kanwar and Apollo Vice Chairman/Managing Director Neeraj Kanwar.

    CHINNAPANDURU VILLAGE, India—Apollo Tyres Ltd. executives and local officials laid the ceremonial foundation stone Jan. 8 for a $280 million passenger tire plant planned for Chinnapanduru, located in Andhra Pradesh state.

    Construction on the plant is expected to start within six months, Apollo said, and manufacturing is slated to start two years later.

    Participating in the foundation stone ceremony were: Shri N Chandrababu Naidu, chief minister, Andhra Pradesh state; and Onkar and Neeraj Kanwar, Apollo Tyres chairman and vice chairman/managing director, respectively.

    The facility will be located an 200 acres of land that Apollo purchased from the Andhra Pradesh government, and will be about 100 miles west of Chennai, the coastal city where Apollo operates a combined passenger/truck tire plant that it opened in 2010.

    Apollo did not disclose the plant's expected capacity but did say employment there would be close to 700 in the first phase. The company expects to add capacity for other tire types as well in later stages.

    The factory will be Apollo's fifth in India and seventh overall.

    At the ceremony, Onkar Kanwar said Apollo envisions the new factory playing a key role in the company's plans to expand capacities in India in the coming years. He also thanked the Andhra Pradesh government for the "excellent cooperation" received throughout the project.

    In November 2016, Apollo disclosed Andrah Pradesh state as the proposed site for this plant. At that time, Indian media reports indicated it would focus initially on motorcycle and scooter tires and eventually would include capacity for light truck tires.

    With fiscal 2017 sales of $1.94 billion, Apollo is India's second largest tire maker and No. 17 worldwide, according to Rubber & Plastics News' annual Global Top 75 ranking.

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