CEAT to make passenger car, 2-wheeler tyres at Tamil Nadu plant

CHENNAI: Tyre manufacturer CEAT Ltd today said it would manufacture radial tyres for lorries, buses and cars and also two-wheeler tyres in its proposed facility at Sriperumbudur near here, for which it inked a pact with Tamil Nadu Government last week.
Top management of CEAT Ltd exchanged documents with the Industries Department officials in the presence of Chief Minister K Palaniswami at the Secretariat last week for setting up the greenfield facility at a cost of Rs 4,000 crore spread over 10 years.

In a filing to BSE, the tyre manufacturer said the investments would be for "incremental manufacturing capacity of car, lorry, bus radial tyres and two-wheeler tyres."

The company board had cleared an investment of Rs 2,800 crore over five years on December 16, 2016, it said.

At a meeting on February 1, 2018, the board had approved additional investments of Rs 706 crore totalling Rs 3,506 crore, CEAT said.

"To implement the project, the company signed a memorandum of understanding with Tamil Nadu government for setting up the project, with an estimated investment of Rs 4,000 crore over a period of 10 years," it said.

In an earlier filing to the BSE, the company had said the capacity of the factory would be one million tyres for lorry, bus radial tyres, 17 million tyres for two-wheelers and six million radial tyres per annum for passenger car.

The company said the proposed investments would be funded through a 'blend of debt and equity'.

Shares of the company were trading at Rs 1,310 apiece up by 0.70 per cent over previous close on BSE.