Apollo Tyres board of directors approved plans for the expansion of its truck-bus radial capacity at its Chennai, India, plant.

The facility will increase from 6,000 tires a day to 8,900 tires a day due to improved demand outlook, the tiremaker said.

Apollo also approved further conversion of its Kalamassery plant from bias truck tires to specialty industrial tires.

Together the projects will cost roughly $340 million.

Apollo’s board also approved, subject to shareholder approval, the option to raise funds through the issue of securities up to $200 million.