Apollo Tyres Invests In Solar Power Company To Facilitate Its Chennai Plant
Published On 24-Jan-2022
The move will boost the annual electricity supply of its Chennai facility.
The homegrown tyre manufacturer Apollo Tyres has taken a green initiative by making a long-term commitment towards sustainable energy. Through this green initiative, which comes under its 5-year vision, the company has decided to upgrade the power capacity of its Chennai manufacturing plant, which is its largest facility in the world.
The Indian tyre brand has acquired 27 per cent stakes in CSE Deccar Solar, a subsidiary of Cleantech Solar, at an investment of INR 9.3 crore (USD 1.2m). The CSE Deccan Solar, incorporated in 2019, is a domestic company based in Mumbai, Maharashtra. It deals with the generation and distribution of solar energy.
Chennai Plant to get 40 million units annually
The move will boost up the share of renewable energy for the Chennai facility to over 30 per cent, which is a solid step in terms of embracing green energy. From this upgrade, the Chennai manufacturing plant will get a guaranteed supply of 40 million units every year. This is a strong endeavour by the tyremaker, as solar power is produced only for a few hours every day. And considering the lack of any storage facility, choosing to offtake out of the optimum energy quantity, which is 20 per cent of the total requirement of this plant, is a commendable move.
President & the Chief Business Officer, Apollo Tyres Ltd, Sunam Sarkar, commenting on the development, stated that adopting green energy has become a routine thing at Apollo Tyres. And this investment in securing solar power is a part of the several green initiatives the firm is undertaking for a sustainable future. This strategy will help the tyremaker to become self-sufficient in terms of power demands, especially for critical equipment, and beef up the commitment of the brand towards cutting down carbon emissions.
Future Cost Savings
The rate of solar power has been fixed by the Indian government for the next two decades and is lower than the charges levied by the State Electricity Board. So, by acquiring stakes in the solar power company and upgrading the Chennai plant, the tyre brand will make a lot of cost savings. The electricity supply to the plant will begin sometime in July this year.
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Currently, the tyre maker, through its Chennai facility, produces about 900 metric tonnes of tyres every day, for a range of passenger cars, and light, medium and heavy commercial vehicles. Apollo Tyres has seven manufacturing facilities, including five in India and two others, located in Hungary and the Netherlands.
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