BEML to set up manufacturing units with JK Tyre, Apollo Tyre

New Delhi, June 22 (UNI) Bharat Earth Movers Ltd (BEML), manufacturer of mining and construction equipment, has tied up with Apollo Tyres Ltd and JK Tyre to set up two captive tyre manufacturing units.

''We along with Coal India Ltd (CIL) will provide a loan of Rs 300 crore to the two companies to supply and manufacture tyres for BEML's high capacity dumpers,'' BEML Director (Rail and Metro Business) N K Sreenivasan said today.

JK Tyre will set up the manufacturing unit at its Mysore plant, while that of Apollo will come up at Kalamserry near Kochi. The commercial production will start after one and a half years.

''Of the Rs 300 crore, we will infuse Rs 50 crore each in both the companies, raised through our Follow-on Public offer (FPO) and the remaining will be funded by CIL,'' he said while launching the company's FPO here.

The company is facing a shortage of tyres for dumpers with capacity of 85 tonnes, 100 tonnes, 125 tonnes and 200 tonnes.

To avoid delay supplies, it has joined hands with Apollo Tyres Ltd and JK Tyre for arranging manufacturing of tyres.

UNI