Leading tyre manufacturer Apollo Tyres had recently started its operations in the Andhra Pradesh's Chittor plant which consists of state-of-the-art technology. The company also announced the introduction of its premium wing- Vredestein tyres in India as a part of its untold strategical planning. Neeraj Kanwar, Vice-Chairman and MD, explains these strategies presented by the company.
In an interview, Neeraj Kanwar explains as to why the manufacturer chose the Chittor plant and whether they are planning for export of tyres from the same unit- "All the units of Apollo tyres in India are multi-product facilities and have been selling its products to all markets. It is a part of the supply chain and logistics that we manage. However, the Andhra plant will only cater to the domestic market until everything functions smoothly because we believe it to be the best option as to increase its sales. Therefore, we are not giving any complex SKUs to the new facility."
He added that the company will be focusing on the first 18 months which will cater to the supply of products to the domestic market and later will increase its production for export. The reason to opt this strategy is simply to ease the stress on the people so that they can get used to the new production facility. The company plans to only bring complex tasks once everything gets an opportunity to settle down and function smoothly.
Also See: Apollo Tyres launches ‘Test The Alpha Challenge’ Initiative
He mentions about why Andhra Pradesh was selected-" Initially we considered three or four states which included Andhra Pradesh, Telangana, Kerala and Tamil Nadu. Apollo tyres already had investments in Tamil Nadu as well as in Kerala and hence these two states were ruled out. So we had to decide between Telangana and Andhra. Incentives at both locations were equal, However, the issue with Telangana was that, it did not have ports nearby which is critical for the company because we depend on it for bringing in raw material as well as sending out finished products.
He added that the Andhra plant is closer to the Tamil Nadu border and most importantly the R&D centre being in Chennai, it was important for us to be closer to it. Therefore, Apollo tyres decided to choose Andhra Pradesh to establish its latest plant.
Also See: Apollo Tyres To Produce Vredestein Tyres in India
About Apollo Tyres:
Apollo Tyres Ltd. came into inception in 1972 and has since been a trusted name in the business of manufacture and sale of tyres. With our corporate headquarters in Gurgaon, India, we cater to over a 100 countries across the globe.
The company markets its products under our two global brands: Apollo and Vredestein. These products are available in countries across the globe through a vast network of branded, exclusive and multi-product outlets. Apollo Tyres has multiple manufacturing units in India, the Netherlands and Hungary.
