- Thursday, April 25, 2024
By: Radhakrishna N S
INDIA’S Apollo Tyres expects its returns to start accruing from 2021 following recent investment across India and Europe, a company official said yesterday (10) in Geneva.
The company has invested close to £440.54 million in a new facility in Hungary and has also earmarked another £418.51m for a greenfield project in southern Indian state of Andhra Pradesh.
It has also upgraded its existing manufacturing plant in Chennai, India, expanding truck tyre radial production to 12,000 units a day from earlier 6,000 units.
“We expect the year 2021 where this capex which we have invested to start giving us output leading to free cash generation,” Apollo Tyres vice chairman and MD Neeraj Kanwar said on the sidelines of the 89th edition of Geneva Motor Show.
The company said it expects operations to gather steam in Europe in the next financial year as it starts catering to original equipment manufacturers (OEMs) from its Hungary plant.
“Hungary plant has now started to produce around 8,000 passenger car tyres a day and around 500 truck tyres a day…we are gaining market share and growing faster than the market in passenger car segment. In truck segment feedback is very positive. So we are very bullish here,” Kanwar said.
The company has started supplies to various original equipment manufacturers (OEMs) in Europe like Volkswagen, Ford, and Audi and is in talks with the BMW group, he added.
With a strong presence in Germany and Netherlands, the company now plans to focus on countries such as France, Italy, Spain and UK, Kanwar added.
(PTI)
