Buoyed by an impressive response to its tyres in the ‘Asia Pacific, Middle East, North Africa’ (APMENA) regions, Apollo Tyres has proposed to set up a manufacturing plant in the Asean region to become a truly global player. This follows the recent decision to set up a greenfield plant in one of the east European countries with an estimated investment of $500 million.
The company has also decided to ramp up its Chennai facility by 35% as it almost attained its full terminal capacity utilisation owing to sharp increase in after-market sales and exports, said Satish Sharma, president, APMENA, Apollo Tyres. ?In the past two years, we have invested heavily in products, distribution network and marketing exercise in APMENA region. We have been importing products from India as well as our plant in Holland to serve the region. We have gained considerable mileage as well as image for our Apollo and Vredestein brands,? he said.
?In order to be closer to customers to serve better, to cut ever-increasing freight costs as well as local duties and risk in exporting tyres, the company has internally taken a decision to set up a greenfield project in the Asean region. This region (excluding India) contributes 9% to our turnover and we will take it to 14% this fiscal,? Sharma said. ?We have developed more products suited to address 70% of the market demand in this region and we would increase it to 100% soon with newer products,? he added. Indonesia, Thailand, Bangladesh or Vietnam could be one of the possible countries, he said.