Gujarat Apollo Industries Ltd has informed BSE that as a part of consolidation of construction equipment business of the group, Gujarat Apollo Industries Ltd (GAIL) has further invested INR 74 millions in Apollo Earthmovers Ltd (AEML) to make it a subsidiary Company. This has increased the investment into AEML from INR 59 Millions as of
March 31, 2007 to INR 133 Millions. Also, a new investment of about INR 12 Millions has been made in Apollo Construction Equipments (P) Ltd (ACEPL). Company plans to make ACEPL as its subsidiary in FY 2008-09.

It may be noted that, AEML was an original promoter Company of GAIL and has been largely engaged in the manufacturing of construction equipment for State and rural roads. Apollo Industrial Products Ltd (AIPL) which is a wholly owned subsidiary of AEML also now comes under Gujarat Apollo Industries Ltd. Consolidated Revenue of AEML in FY 2007-08 is estimated to be INR 800 Millions which was INR 520 Millions during FY 2006-07. The total funding for this has been done using Reserves and internal accruals.

Company intends to strategically follow such model of product-group based subsidiaries in order to accommodate any future technology or financial partners thereby, maximizing the shareholders? value of Gujarat Apollo Industries Ltd.