Apollo to roll out tyres from its 7th manufacturing plant before 2019 end
Published On 2019-02-01 18:46:45 1337 views
The new unit, set up in Andhra Pradesh, would be operational by the end of this year and is expected to contribute to increase the export numbers for Apollo.
Apollo tyres is expected to commission its 7 manufacturing facility by the end of year 2019. This plant would be based out of Andhra Pradesh and would be company’s 5th manufacturing facility in India. Apollo also has manufacturing facilities in Netherlands and Hungary.
“We expect to begin production before the year end from the new plant in Andhra Pradesh where we are investing ₹1,800 crore in the first phase of the project. This will not only add big capacity and consolidate our position in the country, but also step up exports,” Satish Sharma, President, Asia-Pacific, Middle East and Africa, Apollo Tyres said.
Through the commissioning of the new plant, Apollo tyres expects exports to increase to 15% of total sales volume, from the current 12%. The management would also be eyeing the top spot by 2022 with a substantial increase in its capacity on account of this new manufacturing facility.
Commenting on present market share and growing OEM contracts, Sharma said, “ The country’s tyre market is estimated to be about ₹53,000 crore and growing at 8-10 per cent. Of this the two- wheeler tyre market accounts for about ₹10,000-12,000 crore. Except for the two-wheeler market, we have a market share of about 25 per cent and we expect this to go up over the next two-three years taking us to a leadership position by 2021.”
“ We have established strong relationships with OEMs, which account for about 30 percent of the volumes and the rest comes from the after-market. We expect to consolidate our relationships with OEMs.”, he added
Apollo Tyres have two units in Kerala, one in Gujarat and another one in Tamil Nadu. These 4 plants have a combined capacity of 1700 tonnes/day, whereas the one in Netherlands has 195 tonnes/day and that for the unit in Hungary is 100 tonnes/day.