Apollo tyres to invest in Tamil Nadu in collaboration with government

The Indian auto mobile sector grew by 31 per cent which has stimulated a growing momentum owing to the various activities in the sector especially in the last quarter of 2010. One of the ancillary in the auto industry, the tyre producers, faced problems last year because of the increasing prices of the natural rubber which was quite fluctuating. The tyre manufacturers even had to import the tyres owing to the increasing demand.

It is learnt from reliable sources that Apollo has stamped on a supplementary MoU with Tamil Nadu government which includes an investment of Rs 2,100 crore, for being a part of the greenfield project.

As per the reports, it stated that there has been increasing demand for the Apollo tyres has induced it to make an investment of Rs 2,100 crore. This will be the added investment in the unit which will increase its capacity to 6,000 truck tyres and bus radial tyres every day. Also the capacity of passenger car radial tyres will increase to 8,000 every day. It was reported by the Tamil Nadu Government.

It was reveled in the report that Apollo Tyres Chief (Projects) K Prabhakar and the Industries Department Principal Secretary Rajeev Ranjan signed a supplementary MoU in the front of the Deputy Chief Minister M K Stalin.

The reports mentioned that in 2006, the Apollo tyre stamped on a MoU with the Tamil Nadu government and invested Rs 450 crore for the next five years for establishing the company's greenfield facility to produce radial tyres for buses, cars and trucks. The establishment was spread in an area of 135 acre at SIPCOT Industrial Centre at Oragadam near by Chennai. This unit is expected to give direct employment to as many as 1,100 people and the indirect jobs to 900.

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