Apollo Tyres to Diversify
Major Indian tyremaker Apollo Tyres has made the decision to diversify into the transportation and logistics industry. Sister company Apollo International is in the process of establishing a cargo container freight depot near Mumbai, and is eager to acquire an established third party logistics firm to facilitate the development of the new business.
The initial stage of Apollo’s diversification plan will see the company invest approximately £17 million to set up a container freight station (CFS) on a 24 hectare site at Panvel near Mumbai. Once completed, the company will offer inventory management, distribution centres, cold storage and other logistics related activities from this location.
Apollo’s diversification will help the company’s tyre division cut transportation costs through the use of the logistics side of the business. At present Apollo spends approximately £11.5 million annually on logistics and transporting tyres to five thousand or so dealers throughout India.