Apollo tyres will set up a manufacturing facility at Sri City in Andhra Pradesh with an investment of Rs 525 crore. The plant will have a capacity to roll out 5 lakh tyres per month which can be extended upto 30 lakh in future.
“We would have ground breaking ceremony in January and within a year it would be in production,” said Apollo Tyres Chairman O S Kanwar.
“This would be like an FDI investment by one of our Singapore-based subsidiary company (Apollo Tyres Holdings (Singapore) PTE ltd,” he added.
Spread over 250 acres, this plant would produce tyres for motorcycle, scooters and pickups. This would be the fifth plant of Apollo Tyres in the country.
Apollo on Thursday signed a memorandum of understanding with Andhra Pradesh Government for the plant.
The MoU between Apollo the two was signed in the presence of Andhra Pradesh CM N Chandrababu Naidu.
“I am extremely pleased to announce this significant investment by Apollo Tyres to build a world-class facility in Andhra Pradesh,” Naidu said
“Andhra Government would continue its mission to provide best infrastructure companies to emerge at the top of the ease of doing business index,” he added.
Besides, Apollo group has plans to invest in other sectors like hospitals and logistics in the state.
“We intend to put up a hospital in Andhra Pradesh at its capital Amravati... Apart from that we are also looking for logistics, we have another company Apollo logiSolutions,” said Kanwar.