Working on its long-term commitment to sustainability, which is also one of the key pillars of the company’s 5-year vision, Apollo Tyres Ltd has ensured green power for its largest manufacturing facility in Chennai, in the southern part of the country. This will increase the share of renewable energy to more than 30% of the total for this manufacturing facility.
Apollo Tyres has invested in CSE Deccan Solar, a subsidiary of Cleantech Solar, a sum of INR 93 million, for a 27.2% equity, to get a guaranteed supply of 40 million units of electricity per annum for its Chennai facility. Considering that solar power can be generated only for a few hours every day, and there is no storage facility available, the company opted for an offtake of an optimum quantity, which is about 20% of the total requirement in Chennai.
Commenting on this, Sunam Sarkar, President & Chief Business Officer, Apollo Tyres Ltd, said “Green has become a matter of habit at Apollo Tyres. This investment to secure solar power for our Chennai facility is one of the several initiatives that we are undertaking towards a sustainable future. The solar power that we are securing with this investment, will help us become self-sufficient for our power requirements for critical equipment, and strengthen our commitment towards reduction of carbon emissions.”
Considering that the rate of solar power is fixed for the next two decades in India, and is currently lower than the per-unit rate of the State Electricity Board, the company is also looking at cost savings through this deal with Cleantech Solar. The supply of solar power to Apollo Tyres’ Chennai facility is likely to begin in July this year.
Apollo Tyres has an installed capacity to produce around 900 metric tonnes of tyres per day in Chennai, which includes passenger vehicle tyres and light, medium & heavy commercial vehicle tyres.