According to a number of media reports, Apollo Tyres plans to build a greenfield tire in Eastern Europe within the next few years.
"We are looking for a facility in Eastern Europe. It is only in the nascent stage right now," Apollo Tyres Chairman Onkar Kanwar said. "We are looking at geographies such as Eastern Europe as the labor cost is reasonably low and the factory can run for longer hours and seven days a week as in India."
The company chairman said Apollo has not yet determined the level of investment, the plant’s capacity or the timeline for building the plant.
Besides its plants in India, Apollo has tire plants in South Africa and the Netherlands.
Kanwar said the company had experienced “increasing demand” for its radial tires in Europe, with a 17% growth rate last year.
Apollo also plans to increase its exports from India to the overseas market. “Currently, our exports contribute about 14%-15% on the overall growth. We want to increase it to 20% in near future,” Kanwar said.
Additionally, Apollo’s vice chairman and managing director Neeraj Kanwar stated that the company was even considering acquisition of natural rubber plantations in India. Such a move is “very much on the radar,” Kanwar said.
