Ceat acquires land for new tyre plant
India’s Ceat Ltd. has acquired 163 acres (66 hectares) of land in Chennai for building a new factory. The deal was concluded by JLL India, the country’s largest real estate consultancy, who also negotiated associated incentives with the government of Tamil Nadu state.
The land parcel is located along the Chennai–Bangalore corridor in the industrial cluster of Sriperumbudur, and area where many automotive industry OEMs are present. “The primary reason for Ceat to choose Chennai – and specifically this land parcel – for this investment was the proximity to OEMs like Hyundai, Renault Nissan, Ford, Daimler, KIA, Isuzu, etc,” comments Sarita Hunt, managing director – Chennai & Coimbatore, JLL India. “The local skill availability, favourable incentive structure, ecosystem for tyre manufacturing and a very proactive government machinery were also important influencing factors.”
Ceat intends to invest around Rs 50 billion (£578.9 million) in the greenfield project over the coming five years.