Apollo Tyres to expand and raise $200 million

Chennai, July 2 :

Apollo Tyres Wednesday decided to expand its facility near here and covert its Kerala truck bias tyre plant to roll out specialty/industrial tyres.

In a statement, the company said the Board of Directors at their meeting approved an expansion of truck-bus radial capacity at its plant near here from 6,000 tyres per day to 8,900 tyres per day.

The expansion decision is taken owing to improved demand outlook.

According to the statement, the board also approved a further conversion of the company’s Kalamassery plant, in the rubber producing southern state of Kerala, from bias truck tyres to specialty/industrial tyres.

The company estimates a capex of $340 million (Rs.20,500 million) for these projects.

The company plans to raise funds to pursue these organic growth opportunities and for other corporate purposes.

The board also authorised the company to raise funds, subject to approval from shareholders, through issue of securities to the extent of $200 million, in one or more tranches.

The management has also taken an approval to increase the limit of investments by foreign institutional investors (FII) from 40 percent to 45 percent in the equity share capital of the company.

(IANS)