CEAT Tyres to increase capacity, plans Rs 3,500 crore capex

CEAT has earmarked Rs 3,500 crore capital expenditure to increase manufacturing capacity across its plants over the next three to four years.

As per the company’s Annual Report for 2018-19, which was shared
with shareholders, the RPG Enterprise flagship firm has already put in capital to expand its Halol (Gujarat) plant.

It said: “The total investment in capacity expansion is Rs 3,500 crore, including the amount already incurred on the Halol commercial radial tyre expansion, with the remaining amount to be spent over the next 3-4 years.”

CEAT has increased its commercial radial tyre capacity at Halol plant to 9.6 lakh tyres per annum, it said and added that it is also setting up a greenfield passenger car radial tyre plant near Chennai with an installed production capacity of 96 lakh tyres per annum with an investment of around Rs 2,000 crore.

Also, the company is increasing its two-wheeler tyre capacity at Nagpur by 170 lakh tyres per annum. According to CEAT, both these projects are expected to be commissioned in FY20. These projects are expected to be ramped up over 18-24 months.

Image Credit : newstodaynet.com

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