Ceat Ltd. recently inaugurated its radial tyre greenfield project at Halol in Gujarat at an investment of Rs. 700 crores, which will be made in three phases. The plant, located about 40 km from Baroda, will provide employment opportunities to 1,000 people in the first phase of its execution.
The radial tyre greenfield plant spread across 125 acres of land, which is expected to be completed by June 2010, will manufacture 100-150 tonnes of tyres in the first phase. The plant is strategically located in the vicinity of the Tata Nano project and General Motors plant in Gujarat. The production level is targeted to move up to 500-550 tonnes in subsequent phases.
Dedicated for manufacturing truck, bus, light truck and passenger car radials, a 25-40 per cent of the total production of the plant is expected to hit the export market.
Speaking on the occasion, Mr. Paras Chowdhary, Managing Director, Ceat Ltd., said: “Setting up the plant in Halol will enable us to avail the infrastructural support like gas from GSPL, water from the Narmada canal and power from GSEB’s local sub-station which is located just 500 metres away from the site. Moreover, the availability of trained labourers from the adjoining areas and the support from the administration will definitely achieve the cause. Proximity to the port will help in shipping out of tyres and importing the raw materials with ease.
Ceat is expecting a lower cost of production with the new plant and is focusing on a higher per man-hour output. The area being in a no-octroi zone will also help in savings per year for Ceat.
The flagship company of the RPG Enterprises, Ceat Tyres, established in 1958, is today one of India’s leading tyre manufacturers, with an annual turnover of Rs. 2,600 crores. Ceat’s solid brand equity has empowered it to establish a strong presence in both domestic and international markets.
Ceat tyres, tubes and flaps are known for their superior quality and durability, and is recognised as being ‘Born Tough’. Ceat offers the widest range of tyres to all user segments and manufactures world class radials for all Indian vehicles, including heavy-duty trucks and buses, light commercial vehicles, earthmovers, forklifts, tractors, trailers, cars, motorcycles, scooters and auto-rickshaws.
Currently the company manufactures over six million tyres every year. With a major market share in light and truck tyres, it operates from plants in Mumbai and Nasik and exports to over 100 countries across the US, Europe, Africa and other parts of Asia. It has an extensive network consisting of 33 regional offices, over 3,500 dealers and more than 100 C&F agents.
