labels: RPG group / RPG Enterprises, Tyres
Ceat to invest Rs1,000 crore in expansion news
16 April 2008

RPG Group flagship Ceat, India's fourth largest tyre maker by revenue, will invest Rs1,000 crore in the next two-three years as part of its growth strategy, including expanding capacity, strengthening R&D, market expansion and improving customer interface.

The company says it plans to raise the funds through debt, sale of land and internal accruals.

Harsh GoenkaCeat will also increase tyre prices by 5 per cent, effective April 18, due to increase in the cost of raw material such as rubber and crude oil.

The tyre maker will invest around Rs900 crore to set up two additional tyre-manufacturing plants - one plant for radial tyres and the other unit for specialty tyre making facility and OTR (off-the-road) tyres in India.

The speciality tyre manufacturing plant is likely be set up at Ambernath near Mumbai, while talks are on with three states including Gujarat, Tamil Nadu or Karnataka for setting up the radial tyre manufacturing plant, the company's managing director Paras Chowdhary said.

The two additional facilities would increase Ceat's production capacity from 550 million tones per day to 750 million tones per day, Chowdhary added.

The company also unveiled a new logo, changing the 'Rhino', which was the company logo since its inception in 1958.

According to Chowdhary, the fresh look with the new logo symbolises the strategic transformation at Ceat. The overall design represents the company's vision of leading the industry in delivering best-in class products, innovation and services to consumers.

Ceat is also in talks with international tyre majors for sourcing technology used in manufacturing radial tyres. An announcement to this effect is expected in the next two-three months.

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Ceat to invest Rs1,000 crore in expansion