Ceat tyres has announced that they will invest Rs 400 crores in the first phase of their upcoming tyre plant at Butibori, Nagpur in Maharashtra. The foundation stone laying ceremony was attended by Devendra Fadnavis , Chief Minister of Maharashtra and Anant Goenka, Managing Director, Ceat Ltd.
The completion of the first phase of the plant is expected to be in April 2016. Spread over an area of 60 acres, it is expected to have an annual capacity of 1.2 million tyres, allowing the company to double its total capacity within two years, which in turn would directly increase their market share.
As per the company management, the central location of the new plant will give them the advantage of reduced logistics cost bringing down their overall production cost. Maharashtra Industrial Development Corporation will be supporting the ecosystem and infrastructure of the manufacturing facility.
The new plant will have the best in its class technology and will manufacture two and three wheeler tyres. The manufacturing process will have the certification of ISO 14001 for environment management system and OHSAS 18001 for safety, health and environment. The highly automated manufacturing machinery chosen from the world market aims to make the whole manufacturing process streamlined. The two wheeler production volumes are expected to double in the next two years owing to the capacity of the new plant.
Ceat, one of the country’s leading tyre manufacturers has a capacity of over 700 tonnes per day. It manufacturers radial tyres for heavy-duty trucks and buses, light commercial vehicles, earthmovers, forklifts, tractors, trailers, cars, motorcycles and scooters as well as auto-rickshaws.