Chennai: Tamil Nadu’s ambitions to become India’s pre-eminent automotive manufacturing state are steadily extending beyond Chennai. Apollo Tyres, one of the country’s largest tyre makers, is exploring the establishment of a new greenfield manufacturing facility in the State, in addition to its existing unit at Oragadam, adding to a fresh wave of investments expected to turn the southern region of the State into a new auto-ancillary hub.The proposed project by the Gurugram-headquartered company is expected to attract an investment of more than Rs 3,000 crore.S Keerthana, State minister for industries, investment promotion and commerce told media on Monday that Apollo Tyres is in discussions with the State govt and is scouting for land parcels in southern Tamil Nadu for an ultra-mega manufacturing project, defined as an industrial project involving an investment of more than Rs 3,000 crore.Sources in the industries department also confirmed that Apollo is evaluating a new facility in the southern region to support its long-term expansion plans.Apollo Tyres already operates a large manufacturing facility spread over 257 acres at Oragadam near Chennai, besides running two plants in Kerala and one each in Gujarat and Andhra Pradesh. Industry analysts say the company is operating close to peak capacity, with utilisation levels hovering around 90%, making additional capacity a logical next step.Asked about the proposed greenfield expansion, a spokesperson for Apollo Tyres said, “We have enough land at our Andhra Pradesh plant to cater to our future capacity expansion plans. Having said that, as a large and growing organisation, we continue exploring options across multiple locations.”Meanwhile, MRF has already committed Rs 5,300 crore for a greenfield plant to manufacture automotive tyres and allied products in Sivaganga district. Yokohama Rubber Company operates a manufacturing unit at the Gangaikondan SIPCOT Industrial Park in Tirunelveli district.The southern region is increasingly emerging as a specialised automotive cluster, buoyed by investments such as Vietnamese electric-vehicle maker VinFast, which has ambitious plans to manufacture electric two-wheelers and buses in addition to its current production of electric cars.Rather than concentrating production around Chennai, the State has been promoting multiple manufacturing hubs linked by ports and highways, while also generating employment and strengthening the supplier network.
