What will lend an impetus to the auto and tyre sectors is Finance Minister’s proposal to invest Rs 100 lakh crore in the infrastructure sector over next five years.
The company plans to start with 2000 tyres a day and scale it up to 5000 tyres gradually.
The domestic tyre industry has benefited from strong growth in both original equipment (OE) and replacement segments in the ongoing fiscal.
This is the first time that the company has associated with a celebrity as the face of its brand.
“We are proud to extend our relationship with Rohit who has been a stand out performer across all formats of cricket", said Anant Goenka, CEAT MD.
The sops for the tyre maker have raised expectations of revised deals for the state’s existing manufacturers, but industrialists say that a one size-fits-all approach may not work.
The new initiatives would raise the country's largest carbon black maker's capacity by another 50 per cent to 7 lakh tonnes.
Atma has also asked the carbon black manufacturers body to reveal the stock that is available for offtake.
An ongoing crunch in the domestic availability of carbon black has forced several domestic tyre firms to shut down units in the recent past: Industry body
The resources earmarked are for developing the first phase of the unit, for which the company has procured 200 acres of land from the state government.
Imports of truck and bus radials (TBR) have dropped by around 50% to 75,000 tonnes a month after the government imposed anti-dumping duty in September.
Apollo Tyres has, in fact, firmed up plans to invest Rs 525 crore in a greenfield facility in Andhra Pradesh, construction work of which is expected to commence in January 2018.
The tyre industry has been importing block rubber available at?95 per kg to bridge the deficit between production and consumption.
Noting that import of Chinese tyres has started to 'decline', Satish Sharma said, "the imports of Chinese tyres stood at 1,50,000 units in May 2016. Today it is 50,000 units and still going down."
"The deal involved the purchase of a massive 163-acre land parcel in Chennai to set up a radial tyre manufacturing plant," JLL India said in a statement.
The company would like to reiterate that it has no intention of making any attempts to enter the process of acquiring Kumho Tyres,” an Apollo spokesperson said.
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