CEAT to invest Rs 1,800 crore to increase production, open new factory
Published On 22-Jun-2016
The RPG Group, the parent of CEAT Tyres, has decided to focus on local manufacturing, the Group Chairman Harsh Goenka said on Wednesday, June 15, 2016. The RPG Group had earlier aimed to earn 50 per cent of its revenue from overseas markets but Indian govt's Make-In-India drive, meant to promote local manufacturing, seems to have made the Group revise its strategy. The RPG Group currently earns 42 per cent of its revenue from overseas markets.
Harsh Goenka said that RPG Group sees the potential of earning the revenue it was aiming for from overseas markets, it can do now from India itself and hence, will invest in the country. To that effect, its flagship brand CEAT Tyres will invest Rs 1,800 crore to double the production capacity in Vadodra and Ambarnath plants. It will also come up with a new factory in Nagpur to cater to growing demand.
Goenka also highlighted the importance of Good and Services Tax which is being discussed by finance ministers of the states and the Centre. He said that while the benefit may not be much initially, the RPG Group stands to benefit from GST in the long run. He also argued that GST is good for India too as it would add 1 per cent to the nation's economy in monetary terms.
Source: Business Standard