Apollo Tyres in advanced talks for plan to establish mfg unit in Thailand or Indonesia

India's largest tyre maker Apollo Tyres Ltd is finalizing plans to establish a greenfield manufacturing facility in Thailand or Indonesia, with an initial investment of Rs 16 billion, The Economic Times reported citing the company's Vice Chairman and Managing Director Neeraj Kanwar.

"We are in the final stages of discussions with the Thailand and Indonesian authorities for the location of this facility and are aiming to get the unit ready in two years," the daily quoted Kanwar as saying.

The unit will initially produce 16,000 passenger cars tyres and 1,500 truck/bus radials per day and will cater to the demand in the Association of Southeast Asian Nations (ASEAN) region and China. The tyre maker already has manufacturing plants in South Africa and the Netherlands.

The company will raise the capital for the new plant through internal accruals and debt.

Apollo Tyres is planning for the plant in either of the two countries as they are the "hub for natural rubber", Kanwar added. Thailand is the biggest producer of the commodity followed by Indonesia.