Ceat lays foundation stone for new tyre factory
On 11 December 2014, Indian tyre maker Ceat Ltd laid the foundation stone for its new manufacturing facility in Buti Bori near Nagpur, Maharashtra state. The stone laying follows the 30 October approval by Ceat’s Board of Directors to invest Rs 4.2 billion (£42.4 million) to set up a plant producing tyres for two and three-wheeled vehicles. The facility’s planned capacity is 120 tonnes per day.
Ceat Ltd is currently the fourth largest tyre maker in India. It operates three plants within the country (Bhandup, Naskik and Halol) and in the 2014 financial year (1 April 2013 to 31 March 2014) commanded a total market share of approximately 12 per cent, according to turnover (based on figures from CRISIL). Tyres for two-wheeled vehicles accounted for 17 per cent of the company’s gross sales in India, up from 12 per cent (two and three-wheeler tyres) in the 2012 financial year. Ceat’s share of India’s two-wheeler tyre market, based on production figures from national manufacturers’ organisation the ATMA, rose from eight per cent in 2012 to 14 per cent in 2014. During the same period, two-wheeler tyre segment gross sales rose from Rs 6.1 billion to Rs 10.7 billion (£108.1 million), a CAGR of 32.3 per cent.
During the 30 October board meeting, approval was also given for an investment of Rs 500 million (£5.1 million) to implement a project for manufacturing specialty tyres, including off-the-road tyres, through a subsidiary company.