CEAT Gears Up for Rs 1,000 Crore Expansion Drive

CEAT, a prominent company within the RPG Group, has announced a substantial capital expenditure plan of Rs 1,000 crore for the current financial year. This investment will be strategically allocated across various segments to enhance the company's overall capabilities and output.

A significant portion, Rs 250 crore, is earmarked for research and development, factories, moulds, IT, digital initiatives, and efficiency improvements. This focus on innovation and technological advancement aims to solidify CEAT's competitive edge in the market.

The remaining funds will be directed towards increasing the production of truck and bus radial tyres and expanding the downstream capacity for passenger car radials at CEAT's Chennai facility. This expansion is expected to meet the growing demand and boost the company's market presence.

In addition, part of the capital will enhance the output of specialty tyres at the Ambernath factory in Maharashtra. Moreover, efforts will be made to de-bottleneck operations at the Halol plant in Gujarat, ensuring smoother production processes and increased efficiency.

Despite the optimistic investment plans, CEAT anticipates margin pressure to persist for another quarter due to the rising costs of natural rubber, which makes up nearly a third of their raw material costs.

News by Rahul Yelligetti