In its official BSE filing, Apollo Tyres said that, "The production was disrupted in three shifts till December 2, 2015. The production loss due to this natural calamity is 450 MT (approximately)." The statement also added that natural calamity is adequately covered under the insurance policy of the company.
Earlier this year in August, Apollo Tyres had also announced its plan to invest INR 1,200 crore to increase the production capacity of its Oragadam plant. With the expansion plan, the production capacity of the plant would increase from 8,900 tyres per day to 12,000 tyres per day.
Also Read: Chennai Floods: Production of Automotive Industrial Hub Disrupted
Currently the plant only manufactures truck and bus radial tyre. This indicates that production or sales of passenger car tyres will not be affected due to this glitch. Also we hope that as soon as this calamity comes to an end and things become stable, Apollo will commence operation in the plant.
Heavy rains in Chennai have almost disrupted operations of every major automobile firm that currently operates in the state. While we don't believe the situation will persist for a long time, but it has surely crippled the Indian auto industry to an extent.
