Published On:February 24 2016
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Ceat to invest Rs. 330 cr in OTR radial tyres plant.
Tyre maker Ceat, the flagship company of RPG Enterprises, will invest Rs 330 crores to set up an off-the- road (OTR) radial tyres plant in Ambernath (Maharashtra), as per Ceat's Q3 FY16 investor presentation.
For the building the OTR radial plant, Ceat has transferred Ambernath land to Ceat Specialty Tyres Ltd (CSTL), a subsidiary created by the company last year for manufacturing specialty tyres (which includes off-the-road tyres), in the third quarter of FY16.
Ceat has infused Rs 25 crores as an equity investment in CSTL, which will build the plant having an initial capacity of 40 metric tonne (MT) per day. Production will commence at the new manufacturing facility by Q4 FY17.
In addition, Ceat is also looking to expand the tyre manufacturing capacity for 2/3 wheeler and passenger & utility car segments. Production enhancement will be achieved through a mix of activities that will include in-house capacity expansion and increase in outsourced production.