Ceat Close to Land Sale Deal
India’s Ceat Ltd is reportedly close to closing a deal that will see 2.8 hectares of surplus land at its Mumbai factory sold off. This sale will most likely take place some time before March 2008, according to managing director Paras K. Chowdhary. He added that the proceeds from the sale would be injected into the company’s plans to expand capacity.
“We are very close to finalising the sale. We had wanted to close it by September but it has been delayed.” he said. “A large part of the expansion will be met from the sale and internal accruals.”
The expansion will take the form of two new facilities, and total capacity will rise from 400 tonnes per day to 650 tonnes. The construction of one plant, specialising in the production of OTR tyres, will commence by May 2008, and Indian media has reported that, despite continued difficulties finding a suitable joint venture partner, Ceat still plans to proceed with its Rs 5 billion (£62.5 million) TBR facility. “We are still trying to get a radial technology partner. If we cannot form a joint venture in two months we will go it alone,” said Chowdhary.