Apollo to set up Rs 520 cr TN unit

Apollo Tyres will be setting up a Rs 520 crore truck and car radial tyre manufacturing unit in Oragadam, about 55 km from Chennai. The project, to be completed over five years, is expected to create about 2000 jobs.

According to a company statement, the unit will be used exclusively for the manufacture of high quality truck, bus and light truck radial tyres, along with high and ultra-high performance passenger car radial tyres for domestic and export markets.

The company expects to complete the project within 24 to 36 months. A memorandum of understanding (MoU) was signed between the government of Tamil Nadu and Apollo Tyres today.

Onkar S Kanwar, chairman and managing director, said the company intended to build one of the finest and most progressive radial tyre manufacturing units in Oragadam.

It will be investing Rs 300 crores in the first stage, with the final investment reaching between Rs 450 to 520 crores by the end of five years.

Tamil Nadu was chosen as a location owing to its proximity to the rubber growing region, the presence of automobile manufacturers in the state, good connectivity to the domestic market and proximity to a port for ease of import of raw materials and export of finished products.

The radial technology which will be used, is currently being developed by us in Apollo, using its internal research and development expertise.

This fresh capacity is expected to allow the company to produce technology products across categories for both the OE and replacement markets, he added.

According to a statement from the state government, Apollo's radial tyre manufacturing facility would come up in an area of 135 acres in the Oragadam Industrial Park of State Industries Promotion Corporation of Tamil Nadu.

The discussion between the government of Tamil Nadu and Apollo Tyres for this project was initiated in 2000 and today's MoU is the consequence of the process which began six years ago.

With the establishment of this facility near Chennai, the activities of automobile industries in and around Chennai would get further boost as the radial tyre manufacturing is a core activity for the automotive industries. This project would strengthen Chennai's position as a manufacturing and automobile hub.

Apollo has manufacturing facilities in Perambra (Kochi) and Kalamssery (leased facility) in Kerala, Ranjangaon at Pune and Limda in Gujarat. It has also acquired two Dunlop plants in South Africa and two plants in Zimbabwe.

The Rs 400 crore National Automotive Testing and Research and Development Infrastructure project of the Central government would also come up at Oragadam as the state government has decided to allot about 300 acres for the project at Oragadam.