Apollo Tyres to get $60-m IFC boost

Written by Sajan C Kumar | Chennai | Updated: Apr 26 2010, 06:18am hrs
International Finance Corporation (IFC) will invest $60 million (around Rs 270 crore) in Apollo Tyres greenfield manufacturing project coming up on the outskirts of Chennai.

The new plant, which will exclusively roll out truck, bus and car radial tyres, is likely to go on stream by the first quarter of FY2011.

The new facility is coming up at the State Industries Promotion Corporation of Tamil Nadus industrial park at Oragadam.

Apart from the Chennai plant, Apollo was also in the process of implementing smaller capital expenditure programmes at its existing facilities in Gujarat. The Chennai project will provide direct employment to about 1,500 people and an additional 2,000 during the construction phase. A number of new small & medium enterprises (SMEs) are likely to be created in the supply chain for the plant, according to a project impact report prepared by IFC.

In November, Apollo Tyres had enhanced its investment in the Chennai facility to Rs 2,000 crore, against its earlier commitment of Rs 500 crore. The initial capacity is planned to be 110 tonne per day, which would be scaled up to 440 tonne by 2013.

Apollo Tyres has a significant global presence through its export operations and its subsidiary companies in South Africa, Zimbabwe and in Netherlands.