CEAT, the flagship company of the RPG Group, has opened a new radial tyre factory near Chennai, Tamil Nadu, at an initial investment to the tune of Rs 1,400 crore. The new factory will supply passenger car radial and two-wheeler radial tyres.
Tamil Nadu Chief Minister Edappadi Palaniswamy inaugurated the new factory on 12 February 2020.
The company’s unit in Chennai which is its sixth factory in India, is expected to help the company serve incremental orders in the car and two-wheeler segments.
The new production unit has been developed on 163 acre site and will see total investments reaching Rs 4,000 crore in the next few years.
The plant will initially employ around 350 people, but with next levels of capacity ramp up, it is expected to create job opportunities for around 1,000 people.
The plant will have a capacity to manufacture 28,500 passenger car radial tyres and 2,500 motorcycle-radial tyres per day. This unit is expected to add around Rs 2,000 crore to its topline.
The company’s overall capacity is around 1,000 tonne a day now and with Chennai unit, the total capacity of the company will touch 1,250 tonne a day when the unit reaches its peak of 250 tonne per day from about 150 tonne currently.
The unit will serve automotive companies in this region such as Hyundai, Renault-Nissan and two-wheeler makers such as Royal Enfield. The unit will manufacture car radial tyres and premium bike tyres.
The new factory will also supply to markets such as Europe, the US and South Asia.