Ceat Ltd, an RPG group company, plans to invest approximately Rs 2,800 crores over a period of five years up to FY 2022 to raise its tyre manufacturing capacity. With this investment, Ceat aims to raise capacity by 1 million tyres per annum for truck bus radials, 17 million tyres per annum for 2-wheelers and 6 million tyres per annum for passenger car radials. The investments are proposed to be funded through a blend of debt and equity.
Anant Goenka, managing director, Ceat Ltd, informed, “In order to boost the growth in our focused segments of 2-wheelers and passenger car radials, we are expanding capacities over the next five years. With the growth in the radicalisation of truck segment, we have decided to increase our truck bus radial capacity by 1 million tyres per annum to maintain our market share.”
This is part of the company’s strategy to consolidate its presence in the Indian tyre segment, which is expected to witness robust demand – both from OEMs as well as aftersales markets – with strong growth in sales for automotive in the country.
In fact, Ceat launched a new breed of ‘Puncture Safe’ tyres in October 2016 for the two-wheeler market – a year after foraying into tubeless tyres segment for scooters.
