Apollo Tires will invest Rs 525 crore to set up a manufacturing facility at Sri City, Andhra Pradesh, with a capacity to roll out 3 million tyres per month.
The company, which today signed a memorandum of understanding with Andhra Pradesh government for the plant, said it would have ground breaking ceremony in January next year and the production would start “within a year”.
This would be the fifth plant of Apollo Tyres which would be spread in 250 acres and would produce tyres for motorcycle, scooters and pickups.
“We would have ground breaking ceremony in January and within a year, it would be in production,” said Apollo Tyres Chairman OS Kanwar.
He further said: “This would be like an FDI investment by one of our Singapore-based subsidiary company (Apollo Tyres Holdings (Singapore) PTE Ltd”.
Besides, Apollo group has plans to invest in other sectors like hospitals and logistics in the state.
“We intend to put up a hospital in Andhra Pradesh at its capital Amravati… Apart from that we are also looking for logistics, we have another company Apollo LogiSolutions,” said Kanwar.
The MoU between Apollo and the state government was signed in the presence of Andhra Pradesh CM N Chandrababu Naidu.