OPTIMISTIC INDIAN TYRE MAKERS

Tyre makers in India continue to be optimistic on the basis of a medium to long term growth prospects.

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Expected to witness a swift recovery in financials during the second half of the fiscal on the basis of a recovery in Indian operations and continued expansion in the European market, Apollo Tyres has reported a 270.5 per cent year-on-year increase in consolidated net profit of Rs.289 crore for the quarter ending 31 March, 2021. It is bullish about a possible recovery in commercial vehicle sales after almost two-and-a-half years. Said to spend on maintenance of plants; on digitisation initiatives, and infrastructure, the leading CV tyre maker is well-poised to cater to the rise in demand. With the annual maintenance capex claimed to be in the region of Rs.200 to Rs.250 crore, Apollo Tyres is said to be ramping up its Andhra Pradesh plant as per its second phase of expansion. It is expecting to hit a planned capacity of 50,000 passenger car radials per day and 3,000 truck-bus radials per day at the respective plant by March 2022, according to sources with knowledge of the development. Known to have 90 per cent TBR utilisation level in the last quarter of FY2020-21, Apollo Tyres, mentions sources, got a nod to re-start its Kerala (Perambra) plant from the local authorities starting May 21, 2021. This plant should help the company to reduce any bottlenecks it would be facing, inform sources.