NEW DELHI, India (Nov. 101, 2016) — Apollo Tyres Ltd. has selected India's Andrah Pradesh state as the site for a $80 million tire plant it plans to build in the coming years.
Apollo did not disclose what type of tires the plant would make, but multiple Indian media reports indicated it would focus initially on motorcycle and scooter tires and eventually include capacity for light truck tires.
The plant will be Apollo's fifth in India and first in Andhra Pradesh in southeast India.
Apollo signed a memorandum of understanding (MOU) Nov. 10 with Andhra Pradesh officials covering the deal. The MOU was signed by Sunam Sarkar, director, Apollo Tyres, and Kartikeya Misra, director of industries for the Government of Andhra Pradesh. Also present were Shri N Chandrababu Naidu, chief minister, Government of Andhra Pradesh, and Apollo Tyres Chairman Onkar Kanwar.
Mr. Naidu said he was “extremely pleased” with Apollo's decision to buld a factory in Andhra Pradesh, adding: “Our endeavor to provide superior infrastructure and ensure full government support to companies has seen the state emerge at the top of the Ease of Doing Business index in the country.”
Mr. Kanwar thanked Mr. Naidu for the support offered to Apollo Tyres and said Apollo is looking forward to working with the state government on the project.
Apollo's other plants are in Kerala (two factories), Tamil Nadu and Gujarat. The tire maker also has a plant in the Netherlands and one under construction in Hungary.