NEW DELHI: Apollo Tyres Ltd on Thursday announced commissioning of its manufacturing plant in Chittoor district of Andhra Pradesh and said it will invest around ₹3800 crore in building phase one of the factory in the next year and half.
This is the fifth manufacturing capacity of the company in India and the seventh in the world.
The deployment of state-of-the-art manufacturing technologies at the facility will enable the company to target premium original equipment manufacturers and after-market customers in India, the company said in a statement.
According to Onkar S Kanwar, chairman, Apollo Tyres, the facility is a reflection of the company’s growth aspirations and manufacturing capabilities, showcasing some of the best practices available across the globe in tyre manufacturing.
“This highly automated plant uses information technology driven systems and robotics, and employs young and skilled associates on the shopfloor, mostly hired locally. This plant mirrors the hopes and aspirations of the new self-reliant India,” said Kanwar.
“As the demand improves, by 2022, this plant will have a capacity to produce 15,000 passenger car tyres and 3,000 truck-bus radials per day. With a modular layout, the capacity at this facility can be replicated with minimal engineering efforts and with economies on investments,” statement further added.
Apollo Tyres reported 7.2% year-on-year decline in consolidated net profit to ₹77.8 crore for the quarter ended March 31, on account of subdued demand for its products in India and European markets. The company reported a net profit of ₹83.99 crore in the corresponding period last fiscal.
Due to tepid demand for vehicles across geographies, revenue from operations declined significantly by 15.5% year on year to ₹3610.13 crore.