Ceat has aligned investment of 3,500 crores to increase the productivity of its plants in the next 3-4 years, according to the company’s annual report for 2018-19. The RPG Enterprises flagship firm stated that it has already started expanding its Halol plant by giving in some capital.
The company said, “The net amount invested in expanding the capacity of all plants is 3,500 Crores including the amount invested in Halol (Gujrat) plant.” The company has elevated the production of tyres to 9.6 lakh tyres per annum in Halol Plant.
Ceat is also assembling a greenfield passenger car radial tyre plant near Chennai. The setup has got an investment of 2,000 crores and will have a production capacity of 96 lakhs tyres per annum.
Apart from this, the company is also investing in Nagpur plant to increase the production of two-wheeler tyres to 170 lakhs per annum. Ceat stated that both these project will take time to complete. They are expected to refurbished over 18-20 months.
The extension projects are capitalized by incorporation of internal accruals and debts. The exact investors are not cleared until now.
These escalations in production will enable Ceat to enhance its market share in the leading category of passenger car, commercial radial, utility vehicle radial, and two-wheeler tyre categories. These enhancements will help the company grow in all aspects. The capacity increment will provide fruitful results in the future. It will be beneficial for the customers and employees of the company as well.
Ceat exports tires to around 100 countries across the globe. These capacity enhancements will help Ceat to expand its business globally. The company has manufacturing outlets in Bhandup, Halol, Nasik, Nagpur, and Mumbai. The plant in Halol is undergoing renovation. The company also has a new manufacturing outlet in Ambernath, Maharastra, which started production last year.