Apollo Tyres of India is believed to have chosen Chennai, Tamil Nadi, as the site of its new radial tyre factory.

The company, investing Rs.4.5 billion ($US97 million) in the project's first phase, is aiming to have a production capacity of four million radial tyres per year by the end of the initial investment stage.

Apollo, which also has plans to acquire a radial tyre factory in Indonesia, has set a target of Rs. 50 billion turnover and Rs. 5 billion gross profit by 2005.