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Apollo Tyres Ltd will invest additional Rs 1,200 crore for expanding the radial tyre capacity at its Chennai plant from the planned 8900 tyres per day to 12000 tyres per day. “The board of directors of the company on August 11, 2015 has approved further expansion of the truck & bus radial tyre capacity at the Chennai plant from the currently planned 8900 tyres per day to 12000 tyres per day involving capex of Rs 1,200 crore,” said Apollo Tyres in a BSE filing.
Earlier, Apollo Tyres had reportedly planned to invest around Rs 1,500 crore to expand its truck & bus radial tyres capacity at its Chennai plant to 9,000 units a day from 6,000 tyres per day.
ALSO READ: Apollo Tyres to invest Rs 1,500 cr at Chennai unit
Along with the Baroda plant, the Chennai facility, which manufactures 16,000 passengers car tyres in a month, exports around 100,000 tyres in a month. The company also exports truck-bus radial tyres at about 15,000 units a month.
The board on August 11, 2015 also gave its nod to raise Rs 2000 crores in debt to meet capex requirements for ongoing and proposed expansions at Chennai and Kalamassery (Kerala) plants.
Apollo Tyres is reportedly planning to invest Rs 400-500 crore for expanding its off-highway tyres manufacturing capacity at Kalamassery plant in Kerala. The company plans to raise off-highway tyres capacity from 30 tonnes to 110 tonnes over the next 18-24 months.
