CEAT Tyres plans to invest Rs 5,000 cr for new plant near Chennai.
Tyre major CEAT plans to set up a greenfield plant in Sriperumbudur near Chennai with an estimated investment of Rs 5,000 crore to be spent over three to five years. The company had acquired 163 acres through G Square Group.
Sources in the know have said that the company will start with passenger car radial tyres. The initial capacity per day would be around 150 tonne and the first phase of investment would amount to Rs 1,500 crore.
The proposed plant is aimed at tapping leading OEMs such as Ashok Leyland, TVS Motor, Daimler, Renault, Nissan, Honda Two Wheeler and Hero Motor, among others, which have plants in the vicinity.
The company also plans to utilise the proposed plant for exports purpose. Civil work for the first phase of the project has just begun and the plant is expected to begin production in the next eight months. Both Peugeot (near Chennai) and Kia Motors (in Ananthapur, Andhra Pradesh) will be other OEMs that the company will target, sources said.