Apollo Tyres Ltd CFO Gaurav Kumar has said the company has lined up capital expenditure (capex) plans worth Rs 2,500 crore to Rs 3,000 crore to achieve double-digit growth during the current fiscal.
He said, “Our growth targets remain in double digits and the capex plans also remain on track,” and added the company had lined up capex of Rs 2,500 crore to Rs 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”, stated Kumar.
Speaking 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.
On 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.
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