Apollo Tyres Ltd. has lined up capital expenditure (capex) plans worth ₹2,500 crore to ₹3,000 crore in a bid to achieve double-digit growth during the current fiscal, said a top company official. “Our growth targets remain in double digits and the capex plans also remain on track,” said Gaurav Kumar, CFO, Apollo Tyres Ltd.
According to him, the company had lined up capex of ₹2,500 crore to ₹3,000 crore for FY20, a majority of which would be invested in the greenfield Andhra Pradesh plant. In FY19, the company incurred a capex of ₹2,000 crore for consolidating operations. The figure will come to ₹1,600 crore for FY21, he said.
Talking to analysts and investors about the outlook for the present fiscal, he said that original equipment segment did not look as promising as it was six months back. He expected the situation to improve as the year progressed.
Regarding the planned capacity expansion in Netherlands and Hungary units, he said it would be less than four million tyres in Netherlands and 4.5 million tyres in Hungary.
With a small capex, the Hungary plant capacity could be increased to 5.2 million, beyond that it required a significant capex, he said.
“For the current year, the company expected the Netherlands unit to produce a little under four million tyres and about 3.5 million tyres for Hungary,” he said.
Mr. Gaurav also said they had completely written off the company’s investment of ₹200 crore in IL&FS.