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Apollo Tyres Ltd has proposed to invest Rs 300 crore in Kalamassery unit to make it an export-oriented unit to manufacture industrial tyres.
The investment will be made in the next two years to cater to the export markets of Europe, South African and North American markets, Onkar S. Kanwar, Chairman, Apollo Tyres, told reporters here.
“We are in the process of setting up greenfield projects in Europe and also looking at eastern Europe for tyre manufacturing,” he added.
According to the Chairman, the company would be investing Rs 150 crore in India for maintenance capex. It is also in the process of introducing the premium Dutch brand of tyres – Vredestein – later this year. The company had acquired Dutch tyre maker Vredestein Banden BV in May 2009.
Apollo Tyres recorded an annual turnover of $2.5 billion, registering a 37 per cent growth in 2011-12.
The company is targeting a turnover of $3 billion in 2012-13.
India contributed 67 per cent of the turnover, Europe 23 per cent and South Africa 10 per cent.
The replacement market has brought 73 per cent of the revenues and original equipment manufacturers by 27 per cent, said Neeraj Kanwar, Vice-Chairman.
Meanwhile, the company has registered 79 per cent growth in its net profit in Q1 at Rs 138 crore on the back of a more judicious product and customer mix. The first quarter sales also registered an increase by 12 per cent at Rs 3,165 crore. The operating profit stood at Rs 361 crore from Rs 244 crore, an increase of 48 per cent.
The board of directors approved annual dividend of 50 per cent share (0.50 per equity share) for the year ended March 31.
Addressing the 39{+t}{+h} annual general meeting here on Thursday, the Chairman said that Apollo has established a clear leader in the growing truck bus radial tyres, registering a growth of 60 per cent in the quarter; while in South Africa passenger vehicle tyre sales moved higher by 32 per cent.
European operations even in a slowdown situation continued to maintain top line growth and profitability expanded by close to 50 per cent, he said.
> sajeevkumar.v@thehindu.co.in
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