Apollo Tyres to invest $1 billion on global expansion in 5 yrs
Apollo Tyres will be investing US$ one billion (about Rs 5,545 crore) in the next five years to expand its global footprint, which will include setting up two new plants in South East Asia and Eastern Europe.
The company will also be converting its Kalamassery plant in Kerala into a dedicated unit for production of off-highway tyres (OHTs) with about 85 per cent of the output aimed to cater to export markets, including the US, Europe, Australia and Latin America.
Moreover, the company will also be hiking the production capacity of its factory in the Netherlands to 7.5 million units a year from the current 6 million units per annum.
"Over the next five years, we will be setting up two new greenfield plants, one either in Thailand or Indonesia and another in Eastern Europe in a phased manner," Apollo Tyre Vice-Chairman and Managing Director Neeraj Kanwar told PTI.
On the overall investments for the next five years, he said: "All these projects put together, including our Kerala and the Netherlands units, we are looking at an investment of US$ one billion."
Asked about the funding of the investments, he said it would be partly through the US$ 150 million that the company planned to raise via placement to QIBs and internal accruals.
The tyre major will be focusing on setting up the plant in South East (SE) Asia and only after completion of the first phase of the project, the East European plant will follow.
"The first phase of the SE Asia will entail
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