Upbeat on volume outlook, major tyre companies have lined up investment plans worth Rs 5,400 crore in FY2020.
While Apollo Tyres has decided to invest Rs 3,000 crore, Ceat said it will incur a capital expenditure of Rs 1,300-Rs 1,400 crore this financial year. MRF, the leader in Indian tyre market, is planning to invest Rs 1,000 crore.
According to Gaurav Kumar, CFO, Apollo Tyres, the capital expenditure for FY20 is Rs 3,000 crore while for the next year it could be Rs 1,600 crore.
Anant Goenka, Managing Director, Ceat, said: “We had earmarked Rs 1,000 crore for Halol 3 expansion half of which is spent already. The truck and bus radial plant will have a capacity of 80000 tyres per month and its full ramp up will take place in about a year and a half time.”
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