Apollo Tyres is set to invest $340m to strengthen manufacturing capabilities at its Chennai and Kalamassery, Kerala plants.
As part of the expansion project, the company will boost truck and bus radial tyre capacity at Chennai plant to 8,900 tyres per day from the current 6,000 per day.
The project also involves conversion of leased operations at Kalamassery facility from bias truck tyres to industrial tyres.
At the Kalamassery plant production of off-highway tyres will be increased to 110 tons in the next two year-period from the current 30 tons, reported Business Standard citing Apollo Tyres Asia Pacific, Middle East, North Africa president Satish Sharma.
The off-highway tyres are primarily used in vehicles such as loaders, golf vehicles, and agriculture equipments among others.
Apollo Tyres' board of directors have approved the proposed plans as well as authorized to seek shareholders' approval for raising $200m to pursue organic growth opportunities and for other corporate purposes.