As part of its strategy to become a global player and beat Chinese competition, Apollo Tyres (ATL) has decided to spread wings across Asean region as well West Asia, South Africa and South America countries like Brazil and Mexico to increase share of exports revenue from 11% to 15% of the turnover in the current fiscal. The company has set up representative offices in Australia and Saarc region.

The company has set up offices in these regions to make its presence felt by brand promotion, tie-ups with OEs and enter aftermarkets. To increase its export share, the company is investing R1,500 crore more into the Chennai manufacturing plant in the next one year. The investment will ramp up truck/bus radial tyre capacity from 6,000 tyres to 9,000 tyres a day, said Satish Sharma, president Asia Pacific, Middle East and North Africa, Apollo Tyres.

The company had already invested over R2,100 crore into the Chennai plant.

Speaking to the FE, he said: “On an average, the company exports 1,00,000 car tyres and 15,000 truck/bus tyres a month. We are constrained by our existing capacity to exports more. That is the reason we are investing in the Chennai plant. While truck/bus radials capacity utilisation crossed 100%, the passenger car radial tyres capacity utilisation is pegged at 80%. Both Baroda and Chennai plants have a total car tyre capacity of 32,000 units a day and there is no plan for car tyres expansion as of now.”

Sharma, who was in Chennai to participate at the company’s CSR programme close to its factory at Oragadam, said: “We are aware of increasing Chinese threat in the Indian market. The Chinese tyres, majorly poor quality, is making inroads into aftermarket across the country. Of the total replacement sales, Chinese tyres occupy 20% and the imports grow 60% annually. With the expiry of anti-dumping duty in February this year, India further opened the floodgates for more cheap Chinese tyre imports which not only hit manufacturers like us bad but also the Indian public due to its poor quality.” With an increase of 5% duty more on natural imports, the situation become challenging and the margins are under pressure, he added.

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