The Hindu Business Line : Apollo Tyres sees Nov rollout from Chennai plant

Chennai, July 11 Apollo Tyres expects its greenfield facility near Chennai to go on stream from November. The plant will make top-of-the-line truck and bus radials and ultra-high-performance passenger car radial tyres.

According to the company’s 2008-09 annual report, work on the plant that will cater to the growing small car segment is going full steam ahead. The technical standards are ready and product development plans have been finalised. Wet commissioning of equipment has also been undertaken.

The plant will have a capacity to produce 8,000 tyres a day, according to the annual report.

Apollo Tyres signed an agreement in August 2006 with the Tamil Nadu Government for setting up the plant at Oragadam, an industrial suburb to the west of Chennai, at an investment of over Rs 500 crore. The company had said the plant would go on stream in June 2009.

‘Run on Flat’ technology

The company’s annual report also says that it has commenced development of “Run on Flat” technology tyres and winter tyres, in the passenger car radial segment.

Run on flat tyres allow a vehicle to be driven even when a tyre has been deflated because of a puncture, at reduced speeds for a limited distances. These tyres have stiffer side walls that can bear the vehicle’s weight even when the air pressure is reduced. They are widely used in luxury cars.

For commercial vehicles, the company has conducted extensive tests on the ‘Endurance’ premium radial truck tyre and it hopes to launch the product by next year.

The passenger car radial tyre capacity at the Baroda plant has been expanded to 16,500 tyres a day.

The plant will concentrate on high-end, premium products. The company has also commissioned its off the road tyre plant with an initial capacity of 7,400 tonnes a day.

Hungary project deferred

According to the annual report, the project planned in Hungary has been deferred due to the economic slowdown. The company was to invest Euro 200 million in a greenfield plant in Hungary. It recently acquired premium European tyre manufacturer Vredestein Banden of the Netherlands.

Apollo Tyres posted a standalone net profit of Rs 108 crore on an income of Rs 4,071 crore in 2008-09.

The annual report says that the company has come out with a new corporate identity designed by Wally Olins, a leading global practitioner in corporate identity and branding, who has advised companies such as Prudential, Renault and Volkswagen.