The Hindu : Business : Micheline Apollo Tyres to invest $75 m in new plant

Online edition of India's National Newspaper
Wednesday, Apr 21, 2004

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Business

Micheline Apollo Tyres to invest $75 m in new plant

By Our Staff Reporter

NEW DELHI, APRIL 20. Unveiling its new truck and bus radial tyres for the Indian market, Michelin Apollo Tyres Pvt. Ltd. today announced that the company would make an investment of $75 million at its upcoming plant in Ranjangaon in Maharashtra to produce 3.50 lakh truck and bus radial tyres by 2007.

The new joint venture company, set up between France's Michelin Group and Apollo Tyres Ltd., will develop tyres by using leading Michelin technology and distributed through Apollo's dealership network. In the first year, the company will be importing 18,000-20,000 units of tyres that will feature both the Michelin and Apollo trademarks on its sidewall.

According to Onkar S. Kanwar, Apollo Tyres Chairman and Managing Director, they hope to begin actual production at the new plant by the first quarter of 2005. Till then, tyres would be imported from Michelin's facilities in China. As per the agreement for the joint venture, the level of investments will be in the ratio of 51 per cent from Michelin and 49 per cent from Apollo Tyres.

Michelin Apollo Tyres CEO Herve Dub said they would also be looking at introducing radial tyre retreading in the coming time. Michelin Asia-Pacific President, Jean-Marc Francois, said the Asia-Pacific region occupied an important position in the company's global plans.

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