Rs 5,400 crore will be Invested by MRF, Ceat and Apollo in FY20
The Silicon Review
15 May, 2019
Launching of new products and manufacturing more inventories is the reason for this new investment plan. The products by these tyre companies are used in the after-market (replacement) section. It is said to be more than half of their inventory and surely anyone would agree that this is not the right path for a manufacturer. For now, Apollo Tyres has plans for the GREENFIELD plant that is said to start in Andhra Pradesh. The company has planned to bring in Rs 3,000 crore for its development.
The current CFO of Apollo Tyres, Gaurav Kumar confirmed that the capital expenditure for FY20 will be Rs 3,000 crore. Further the next year it will be investing Rs 1,600 crore. Apollo has an excellent growth in the passenger and truck radial replacement during Q4. It was a 7 per cent growth for the truck and bus radials and the passenger car redials grew by 8 per cent. The share of OEM for it is 55 per cent presently and Gaurav Kumar confirms this news. The same way Ceat is also looking to invest Rs 1,300 to 1,400 crore this year along with MRF with aRs 1,000 crore investment.
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