Apollo Tyres to go for another price hike in June

Apollo Tyres today said it will increase product prices by 3.5 per cent in June, after it undertook a similar hike this month to offset rising cost of natural rubber.

The company, which is facing a go-slow agitation at its Perambara plant in Kerala, said production has gone down by over 65 per cent to 100 tonnes per day from 300 tonnes per day earlier at the unit.

"From May 1 we have increased prices of tyres by 3.5 per cent and going forward in June also there will be an increase of 3.5 per cent," Apollo Tyres Vice Chairman and Managing Director Neeraj Kanwar told reporters here.

He said prices are going up and it will gradually go up as there has been constant increase in the natural rubber prices.

"We are increasing (prices) on both OEM (original equipment manufacturers) side and the retail side," he added.

The company's passenger car tyre price ranges between Rs 1,200 and Rs 10,000 while those of commercial vehicles are tagged around Rs 8,000 to Rs 15,000 per unit.

On the impact of the ongoing go-slow agitation by workers at its Perambara production plant in Kerala, Kanwar said: "The company used to produce 300 tonnes per day of tyres from the unit, which has come down to 100 tonnes per day."

He said the company is looking to settle the issue with workers this month.

"We have a three year long term settlement with the workers and it is about to be renewed now but the workers resorted to go-slow agiation since mid-April. We are expecting to settle the issue within this month," Kanwar said.

The company has a total production of 1,600 tonnes per day, including 1,200 tonnes everyday from its three plants in India.