By Denna Bowman
Apollo Tyres is likely to overtake MRF to become India’s largest tyres manufacturer after the recent acquisition of Vredestein Banden.
The company has undertaken a couple of overseas acquisitions in the past year and the tyres maker plans to fund this acquisition with a mix of internal accruals and debt financing.
The Apollo deal to buy the Dutch company was seen as a shrewd move as part of its strategy to expand into the European market.
Vredestein Banden BV has a strong sales and marketing network in Europe, along with a production unit in Enschede, the Netherlands.
To increase its presence in the radial tyres segment of commercial vehicles, Apollo tyres has made an investment in Chennai for a greenfield project, which is likely to be operational by the end of this year.
This plant, with facilities to make radial tyres for both trucks and cars, is going to have capacity of 180 tons/day, which can be augmented, to 450 tons/day depending on the demand.