CEAT to invest Rs. 800 million for expansion of Sri Lankan plant.
CEAT Sri Lanka yesterday announced it will invest Rs. 800 million over the next 12 months to substantially expand its radial tyre manufacturing capacity in the country to supply growing local and export demand.
The company, which currently has a 30% share of the radial tyre market and supplies nearly half of Sri Lanka’s overall requirement of pneumatic tyres, said the investment would increase radial tyre production by 75%, from 40,000 tyres a month to 70,000.
The decision to expand capacity comes exactly two years after CEAT Sri Lanka commissioned a Rs. 600 million state-of-the-art radial tyre manufacturing plant at the company’s Kelaniya complex to produce high-performance tyres for cars and sports utility vehicles (SUVs).
“Our new investment entails a virtual replication of the plant we opened in July 2014, with new hi-tech machines,” CEAT Sri Lanka Managing Director Vijay Gambhire said. “This bold decision to almost double production reflects our commitment to Sri Lanka and our confidence in the potential of our tyres to compete with global brands in the domestic and export markets. With this investment, CEAT Sri Lanka’s total investment will rise to Rs. 3.8 billion.”
He said the new machines to be installed would produce 13 sizes of radial tyres, increasing production of several existing sizes as well as adding new sizes to the company’s radial tyre portfolio, which already comprises of 33 sizes – 20for cars, eight for vans and five for SUVs.
“The increase in production capacity and the introduction of new sizes will significantly strengthen the CEAT brand’s position as the highest-selling radial tyre in the local market, and give us the potential to double our market share in the segment,” CEAT Sri Lanka Vice President Sales, Marketing and Exports Ravi Dadlani added.-