To secure its own supply of natural rubber, Apollo Tyres has leased approximately 10,000 hectares of land in the Southeast Asian country of Laos.
Company chairman and managing director Onkar Kanwar told journalists in India that the yield from this rubber plantation would be ready for tapping in within two to seven years. According to the Hindu Business Line, Apollo plans to meet 25% of its total natural rubber requirements from leased plantations within five years.
Reaching this level of self-sufficiency is viewed as a form of security, and Kanwar stated that a crisis situation currently exists in India in regards to increasing raw material prices and natural rubber shortages.
The chairman and managing director also outlined plans to invest Rs 5 billion in its domestic and international operations during the current financial year. Of this, six million euros will be invested in the Apollo Vredestein operation in the Netherlands, US$30 million in Apollo Tyres South Africa and the remainder in India.
Some Rs 400 million of its funds for India will be invested in its facilities in the company’s Perambra Chalakudy and Kalamassery plants and the balance in increasing capacity at its Chennai factory. Truck tire capacity there is expected to double to 6,000 units per day and passenger car tire capacity will also double, to 16,000 units per day. (Tyres & Accessories)
