Apollo Tyres has postponed its plans to invest in a greenfield project for the manufacture of truck radials, until the market is ready.

The company had planned to set up the plant near Sriperumbudur in Tamil Nadu. The investment envisaged in the project was Rs.450-500 crore. The project was to be set up in technical collaboration with Continental Tyres AG of Germany.

Apollo is, however, planning to invest Rs.200 crore in a pilot project for the manufacture of truck radials, at its plant at Vadodara in Gujarat, in collaboration with Continental. Since the manufacture of truck radials requires complex technology, the company plans to put up a test module and develop a unique tyre for the Indian market. The pilot project will launch truck radials in 18-24 months’ time.

A part of the Rs.200 crore investment would also be used to upgrade capacities, since all the four plants of the company are operating at full capacities.