Apollo
Tyres has commenced work on expanding the capacity of its unit at Perambra in
Thrissur district of Kerala.
The
company would be expanding its tyre manufacturing capacity from 132 tonnes to
200 tonnes per day at total cost of Rs.70 crore. The project is scheduled to
commence operations by December 2002.
In
another development, Apollo Tyres has shelved its Rs.50 crore proposal to
expand and modernise the Kalamassery unit of Premier Tyres, which it has taken
over. This follows the labour union’s demand for additional wages. The company’s
management opines that higher wages could lead to the unit becoming unviable.
The company had also dropped its plans to
set up a new radial tyre manufacturing unit in Tamil Nadu, instead it has expanded the capacity
of its Vadodara unit to manufacture truck radial tyres.