The Hindu Business Line : Apollo Tyres relocates Kochi facility

Kochi, Oct. 12 Apollo Tyres Ltd (ATL) is relocating its existing manufacturing unit at Kalamassery to the newly constructed Rubber Park at Irapuram near here.

The total investment for the new unit, to come up on 23 acres of land, would be to the tune of Rs 200 crore. The unit would manufacture truck and industrial tyres. The relocation of the existing plant at Kalamassery will be undertaken in phases over a period of 15 months, Mr O.S. Kanwar, ATL Chairman, said. With the setting up of the facility at the Rubber Park, the company hopes to increase its production from the existing 90 tonnes per day (tpd) to 200 tpd.Addressing a press meet, the Chairman said that the 35 acres of land at the existing unit at Kalamassery would be utilised for setting up an IT Park and some other infrastructure projects. Besides, the company has also acquired another 6 acres of land near the existing unit for setting up a healthcare facility, including ayurveda treatment, as part of diversification into the healthcare sector, he said.

“It is imperative for us to shift the existing unit to the outskirts as the city is getting highly congested. It is happening everywhere in the country,” he said and clarified that there would not be any job loss amongst the existing employee base due to the relocation. The company will be dismantling the existing facilities in phases.

The company, as part of its expansion plans, has so far this year already invested Rs 60 crore in the Perambra unit. The capacity of the unit is at present 300 tpd. Last year, it had invested Rs 80 crore in the unit, he added.

Due to the increased manufacturing activity at the new site in Irapuram, the State and Central Governments are expected to earn double the current duty and tax revenue from the new facility — from the current average of about Rs 45 crore a year to over Rs 100 crore once completed, Mr Kanwar said.

ATL’s turnover has already crossed $1 billion and the company has set a target of $2 billion in the next three years, he said.