Apollo Tyres Ltd. says it has secured green power sources for its largest manufacturing facility in Chennai, located the southern part of India. This will increase the share of renewable energy to more than 30% of the total for this manufacturing facility.
Apollo Tyres has invested in CSE Deccan Solar, a subsidiary of Cleantech Solar, a sum of INR 93 million (approx. $1.25 million), for a 27.2% equity, to get a guaranteed supply of 40 million units of electricity per year for its Chennai facility. Considering that solar power gets produced only for few hours every day, and there is no storage facility available, the company opted for an off-take of an optimum quantity, which is about 20% of the total requirements in Chennai.
Considering that the rate of solar power is fixed for the next two decades in India, the company is also looking at cost savings through its deal with Cleantech Solar. The supply of solar power to Apollo Tyres’ Chennai facility is likely to begin in July this year, the company says.
Apollo Tyres has an installed capacity to produce around 900 metric tons of tires per day in Chennai, which includes passenger vehicle tires and light, medium and heavy-duty commercial vehicle tires.