Apollo - III

completed

ATL is one of India’s leading tyre manufacturers with over 20% market share and has been an IFC client since 2003. ATL is undertaking a US$515 million expansion project over FY09- FY12 to establish a greenfield facility near Chennai in South India for the manufacture of Passenger Car Radial (PCR) tyres and Truck and Bus Radials (TBR); and expand its facilities in Vadodara, Gujarat with the expansion of its PCR production line and establishing a production line for very large sized tyres for special applications such as mining – termed as Off The Road (OTR) tyres (the “Project”). The Project will increase ATL’s tyre manufacturing capacity from 27,500 tyres per day to 50,000 tyres per day with the main increases being a threefold increase in the passenger car radial (PCR) capacity and a twelve-fold increase in the truck and bus radial (TBR) capacity. Phase I of the greenfield facility near Chennai is nearing completion and the commercial production of tyres started in the first week of March 2010. ATL expects to reach the full capacity at this facility by July 2010 for PCR (8,000 tyres/day) and April 2011 for TBR (6,000TBR/day). The OTR and PCR production lines at the Limda facility have been completed and the commercial operation has started over the past months. ATL is investing in the implementation of a waste heat recovery (WHR) project at ATL’s Vadodara plant on a joint venture/public partnership basis with the Gas Authority of India (GAIL) IFC is considering an investment in this Project.