BEML to lend Rs100 crore to Apollo Tyres for dedicated tyre plant

13 February 2009

State-owned heavy equipment maker BEML will lend Rs100-crore to Apollo Tyres for setting up of an off-the-road (OTR) tyre-making plant to meet the former's demand.

The two companies have entered into an agreement for the manufacture of the OTR tyres for the public sector firm, Apollo Tyres said in a release.

Apollo Tyres is investing Rs120 crore in Limda, in Gujarat, for setting up the first phase of the OTR tyre manufacturing unit, which will be dedicated to BEML. Apollo plans to make additional investments to enhance capacity over the next three years to manufacture radial OTR tyres.

Apollo Tyres will soon make delivery of the first set of 14 tyres manufactured at the plant to BEML's plant in Mysore. Regular production at the Limda facility, however, is expected in March.

BEML Ltd, a category 1 mini ratna public sector undertaking, was set up in 1964 for manufacturing rail coaches and spare parts and mining equipment. Government holds 54 per cent stake in the company.

During the last financial year, BEML achieved a sales turnover of Rs2,713 crore.