The Chennai plant has an existing capacity of about 95 lakh tyres per annum, including capacity additions under implementation. Excluding capacity additions under implementation, the capacity utilisation is 80 per cent, the company said in a stock exchange filing.
It proposes to add additional capacity of 35 Lacs Tyres per annum.
Ceat said it expects good growth in short to medium term in passenger car utility vehicle segment.
This investment is intended to add capacity progressively, to service the anticipated future demand, it said.
The capacity is expected to be added by end of First half of FY2028 and it will be funded by way of mix of internal accruals and debt, the company said.
Tamil Nadu accounts for nearly 40 per cent of India’s tyre production, with almost all major tyre manufacturers having a significant presence.
Meanwhile, the company reported its third quarter results on Monday.
“It’s been a good quarter, supported by strong revenue growth across all segments. Reduction in GST rates have improved sentiments in domestic market, and we have had some opportunities opening up in international markets as well. We expect the positive momentum to sustain in the coming quarter and help us close the year strongly,” Arnab Banerjee, MD & CEO, Ceat Ltd said in a statement.
“Stable commodity prices helped in sustaining gross margins. We have recognised a provision of Rs 58 crores in Q3 towards the impact of new labour codes,” Kumar Subbiah, CFO of Ceat Ltd, said.
