Apollo To Make Chennai Its Research And Development Hub At Rs 2000 Crore (22-Feb-2010)
Apollo Tyres is quite bullish about the Indian market as the tyre firm is all set to make Chennai its hub for both manufacturing as well as research and development (R&D). The company is setting up a manufacturing facility of Rs 2,000-crore in which, the company is likely to inject another Rs 600 crore.
The Chennai plant will start the production and it will contribute Rs 3,500 crore to the revenues of Apollo Tyres over the next three years, said Satish Sharma, chief India operations, Apollo Tyres.
Moreover, he added that the revenue of last year were Rs 4,000 crore, expected to increase to Rs 5,000 crore in the next fiscal. "Three plants - one in Gujarat and two in Kerala - contributed to the revenues."
The daily production capacity of Chennai facility will be 8,000 passenger car radials as well as 6,000 truck and bus radials.
Sharma said that the investment at the initial stage will be around Rs 2,000 crore.
Moreover, he added that the plant will reach full capacity for car radials in a period of 6-7 months, after which the company is likely to boost the production in a phased manner. The plant is designed to produce 20,000 car radials daily and to enhance this capacity, there will be a requirement of another Rs 500-600 crore.
Meanwhile, Sharma added that all the company''s plants across India will attain the full capacity utilisation in one year.
The installed capacity for the commercial vehicle radial of the company stood at 1.8 lakh and 8 lakh for car radials a month.
The company will increase the share of the company in the after-market segment in truck and bus radials to 50 per cent, which currently stood at 30-33 per cent.
Apollo Tyres is currently trading at Rs.57.4, down by 0.51% at 9.22 AM.
The stock hit an intraday high of Rs.58 till now, as against the 52-week high of Rs.59.9.The stock hit a low of Rs.57.05 during the day. The stock had hit a 52-week low of Rs.14.75 on March 2, 2009.
The stock opens at Rs.58 at BSE. The total traded volume of the scrip on BSE till now stood at 69623.
Meanwhile today, the BSE Sensex is trading down by -26.59 points, or -0.16% , at 16210.46 on 9:22 AM.
Meanwhile today, the NSE Nifty is trading down by -12.40 points, or -0.26% , at 4844.
Apollo Tyres has an equity capital of Rs 50.40 crore as of 2009 Dec. The face value per share is Rs 1. At the current price of Rs 57.4, the P/E multiple stood at 26.8997668997669 with book Value of 26.84 and P/BV at 2.14.
The total shareholding pattern of the company as on Dec 2009 stood at Promoters- 39.35%, Institutional Investors- 30.56%, General Public- 19.14% and other investors- 10.96%.
Considering the current price of Rs. 57.45 at 9:25:00 AM , the stock had outperformed the market over the past one month till 23/02/2010 surged 10.16% as compared to the Sensex''s return of -3.4% and NSE Nifty''s -3.4 % returns.
Considering the current price of Rs. 57.45 at 9:25:00 AM , the stock had outperformed the market over the past one quarter till 23/02/2010 surged 15.48% as compared to the Sensex''s return of -3.82% and NSE Nifty''s -3.82 % returns.
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