Apollo Tyres setting up unit in Hungary

New Delhi: Apollo Tyres on Wednesday announced an investment of Rs 1,160 crore ( €200 million) to set up a manufacturing unit for passenger car tyres in Hungary. In the first phase, the facility will have a capacity of 7 million tyres, the company said, with production likely to commence in the next 18 months.

“The manufacturing facility in Gyongyos, Hungary will become our hub to service our passenger car radial customers in Europe and North America,” said Mr Onkar S. Kanwar, Chairman and Managing Director, Apollo Tyres.

Currently, Apollo Tyres exports to these regions where the passenger car tyres market is estimated to be of 240 million units size annually and growing at almost two per cent.

It plans to set up a chain of company-owned retail outlets this year. Company officials also said that it was looking at doubling investments and capacities after completion of the first phase of its manufacturing operations. Apollo already has two facilities each in South Africa and Zimbabwe.

In the domestic market, the company is setting up a unit in Chennai at an investment of Rs 220 crore in addition to its existing four production units. Mr Kanwar said that the investment at the Chennai facility, which will be pumped in over 18 months, is part of the ongoing product and capacity expansion plans for the domestic market.

Q3 sales, net up

The company has reported a 77.4 per cent jump in standalone net profit at Rs 62.1 crore for the third quarter ended December 2007 against Rs 35.0 crore in the same quarter last year. Standalone net sales rose to Rs 974.1 crore (Rs 857.5 crore).