Apollo Tyres to set up unit in Tamil Nadu, signs MoU with state government

Our Corporate Bureau
07 August 2006

Mumbai: Apollo Tyres Ltd has entered into a memorandum of understanding (MoU) with the Tamil Nadu government for setting up a radial-tyre manufacturing unit. The state government has allotted 60 hectares (135 acres) of land at the Oragadam Industrial Park for the new facility.

The company said it proposes to invest Rs 300 crore during the first phase of the project, within three years. The investments will go up to Rs 450-520 crore within five years from the date of the MoU.

Continental Tyres, the fourth largest tyre company in the world, will provide technology for the radial tyre unit.

The investment, the company said, is subject to all necessary clearances and approvals.

Apollo Tyres has reported a lower net profit of Rs 16.2 crore for the first quarter of the current financial year against Rs 16.7 crore during the same quarter in the previous financial year. Total income, however, was up at Rs 757.3 crore from Rs 568.3 crore.

With units in Pune, Baroda and Perambra in Kerala, Apollo Tyres is a leader in the industry, controlling 21 per cent of the country's tyre market.