Apollo Tyres are planning on setting up a tyre plant in Eastern Europe where the labour costs are lower.
“We are looking at geographies like Eastern Europe, Indonesia for new plants. First, we will have our factory in Eastern Europe where the labour cost is low and the factory can run for longer hours as in India ,” Chairman Onkar S. Kanwar told reporters.
However, the Rs.8,120 crore company officials said that the primary task is to stabilise their newly inaugurated plant in Chennai where an additional sum of around Rs.500 crore is to be invested in a couple of months time taking total outlay to Rs.2,100 crore.
“The Eastern Europe project is still in the planning stage. I don’t see us there before a year. The minimum economic size of a car radial plant will be 400 tonnes a day. As a company, we are looking for rubber plantations outside India,” Vice Chairman and Managing Director Neeraj Kanwar added.
