Ceat Ltd. to invest Rs. 300 Crore in a new manufacturing plant in Maharashtra.
Ceat Ltd., one of the major Indian tyre manufacturers have announced that the company will be investing INR 300 crore in a bid to set up a manufacturing plant in Maharashtra. The facility will be built with the primary objective of serving the OTR export market.
Earlier today CEAT reported an increase of 27.03% in its consolidated net profit at INR 113.39 crore for the 3rd quarter ending December 2015. Ceat has already its land in Anbernath region of Maharashtra to Ceat Specialty Tyres Ltd. its wholly-owned subsidiary for the plant set up.
Anant Goenka, MD, Ceat Ltd. said that “Given the strong growth potential in the OTR (Off the road) sector & its synergy with Ceat capabilities, the company has taken a strategic decision to increase itsour focus there.” Adding that, “CSTL has been created to ensure dedicated focus and drive towards this opportunity & Ceat will be investing Rs 300 crore for an initial capacity of 40 metric tonnes a day.”
The company’s board, which met on Thursday, also approved providing of corporate guarantee to the tune of Rs 220 crore to the bankers of CSTL as a collateral security for the long term loan(s) being taken by CSTL from the said bankers.