GURGAON, India (July 3, 2014) — Apollo Tyres Ltd.’s board of directors has approved $340 million in investments in two tire plants in India.
The projects entail expanding and modernizing a radial truck tire plant in Chennai and converting a bias-ply truck tire plant in Kalamassery to specialty/industrial tires.
Capacity at the Chennai factory will be boosted nearly 50 percent to 8,900 units a day, reflecting an improved demand outlook and the 4-year-old Chennai factory’s better-than-projected return on investment thus far, the tire maker said.
Apollo did not disclose details as to the conversion of the 19-year-old Kalamassery plant, where two years ago the company announced plans to invest about $55 million to install and upgrade capacity for off-highway tires.
Apollo did not comment on the potential effect on employment of either project.
The board of directors also authorized the company to raise $200 million in funds, subject to approval from shareholders, by issuing securities in one or more tranches.