Ceat Plans Investment of Over Rs 2000 Crore on Manufacturing Facility in Chennai
Ceat has a distribution network of more than 4,500 dealers and over 30,000 sub-dealers in India.
Photo for representation only. (Image: CEAT)
Tyre manufacturers Ceat plans to invest around Rs 2,000 crore over the next 3-5 years on setting up a new manufacturing facility in Chennai. The first phase of the plant is expected to start production in 2019. The RPG Enterprise flagship firm has already acquired a 163-acre land parcel for the project.
"The company is setting up a greenfield plant with an estimated investment of approximately Rs 2,000 crore to be spent over three to five years," Ceat said in its annual report for 2017-18. Civil work for the first phase of the project has begun and the plant is expected to begin production in the next 12 months, it added.
Ceat will start with passenger car radial tyres at the plant with an initial capacity of around 250 tonnes per day. It also plans to utilise the facility for exports. The company currently ships tyres to more than 100 countries.
The company has manufacturing facilities at Bhandup, Mumbai, Nashik, Halol and Nagpur. Besides, it also has an off-highway tyre manufacturing plant at Ambernath, Maharashtra, which commenced commercial production in last fiscal.
The major tyre company meets its production through in-house plants and secures the rest from various outsourcing partners on a conversion-cost basis and bought-out basis. It also operates in Sri Lanka through a 50:50 Joint Venture (JV) named CEAT Kelani Holdings Company (Private). In the domestic market, the company has a distribution network of more than 4,500 dealers and over 30,000 sub-dealers.
Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.
Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months. Use code FREEDOM.
Recommended For You
- DDCA to Name Stand After Virat Kohli in Feroz Shah Kotla Stadium
- Jio Effect: Hathway 100Mbps Plan Priced at Rs 699, Play Box Android TV Box Available at Rs 899
- Shraddha Arya Suffers Head Injury While Performing on Nach Baliye 9, Actress Momentarily Blacks Out
- Flipkart Begins Roll-out of Video Service: Here is Everything You Need to Know
- Instagram Users Can Report False Content And Expect Fact Checkers to Verify it