Apollo Tyres announces Rs.3200 crore capex for European and Chennai market

| Friday, June 3, 2016 - 12:46
First Published |
Apollo announces Rs.3200 cr. capex for European and Chennai market, Apolo tyres, capital expenditure, Apolo capital expenditure, Hungary, Europe , Chennai, Netherlands

Apollo's Rs.3200 cr. capex plans done

Chennai: A new manufacturing facility in Hungary, Europe and development for its plant in Chennai; these are the main reasons why Indian tyre manufacturer Apollo tyres has set aside Rs. 3200 crore as the capital expenditure for the current financial year.
The announcement on the company’s investment plans for the  year was made by the company;s Chief Financial Officer in an analysts’ call on Monday.
The capex is a mix of funding for both the firm’s domestic as well as overseas operations. The capex for domestic operations will be Rs 1,700 crore and an additional 200 million Euro (over Rs 1,510 crore) for the European operations in the current financial year.
The new plant in Hungary, for which ground was broken in April last year, is expected to go onstream in 2017. According to earlier statements from the company’s top management, at full capacity, the plant will be capable of producing 5.5 million passenger and light truck and 675,000 heavy commercial vehicle tires a year. It will complement Apollo’s factory in Enschede, Netherlands, and bring in the entire range of Apollo and Vredestein branded tires to the European market.

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