The Hindu Business Line : Apollo to step up truck-bus radial tyre capacity

Apollo Tyres is planning to step up its truck-bus radial tyre capacity in the next fiscal. The company had set up its radial tyre facility for heavy commercial vehicles on pilot basis at Vadodara, using indigenous technology, in this fiscal.

The pilot plant has nearly exhausted its capacities and is currently producing 1,000 tyres a day. Apollo is the second Indian company to make foray in truck-bus radial tyres after JK Tyres.

“Our truck-bus radial tyres have received encouraging response from the customers. Accordingly we are planning to expand the capacities during the next fiscal. The expansion plan should be ready during January-March, 2008,” a senior Apollo Tyres official told Business Line.

The official, however, made it clear that the company was in favour of “gradual expansion” of its truck-bus radial capacity at this juncture. The strategy was adopted to ensure stabilisation of the technology as well as steady improvement of product quality over a period of time.

Truck-bus segment apart, Apollo has existing radial facilities for passenger cars and light commercial vehicles.

On the forthcoming off-the-road (OTR) tyre facility at Vadodara to meet the demands of Bharat Earth Movers Ltd (BEML), the official said that the production was expected to commence by end-2008. BEML is a collaborator in the project.

Apollo is also planning production of speciality and industrial tyres such as docking tyres and those used in forklifts.

Shares of Apollo Tyres were closed at Rs. 47.40 at BSE on December 20, 3.46 per cent lower than its previous closing.