Ceat to invest Rs 1,200 cr to expand into truck, bus radial capacity
Products

Ceat to invest Rs 1,200 cr to expand into truck, bus radial capacity

Indian tyre manufacturing company Ceat has announced a fresh investment of Rs 1,200 crore to expand into truck and bus radial capacity, even after the second wave of Covid-19 has created a short-term disruption.

The fresh investment approved by the company is over and above the Rs 3,500 crore investment announced by the company a few years ago. A part of this investment will expand the existing plant in Halol, Gujarat, and the reading fund will be used for setting up a brownfield facility in Chennai, Ceat’s base for car radial tyres.

Ceat told a prominent media source that the company's truck radial facility in Halol--on the outskirts of Baroda--is expected to be utilised in a year's time, and then by then, it would need a fresh capacity in 18 months, hence the company has taken the board approval.

The Rs 1,200 crore will be used in two phases, approximately half will be invested now, and the second half will be invested once the market picks up, said Ceat.

For FY22, Ceat has lined up a capital expenditure of Rs 1,000 crore, which will go into specific projects on car radials, truck radial and speciality tyre sector.

Despite the aggressive expansion that the company has rolled out, Ceat said it has not lost sight of financial efficiency. The company's debt has been reduced by Rs 150 crore in the last one year and has further improved the company's debt-equity ratio.

Ceat delivered a strong earnings performance for FY21, with revenues posting a growth of 45% at Rs 2,290 crore, with net profit at Rs 153 crore. However, the earnings before interest, taxes, depreciation, and amortisation (EBIDTA) margin of Ceat plunged to 11.7% owing to a recent spurt in commodity prices that hit the bottom line.

Image Source


Also read: Tata Motors’ new-gen smart trucks

Indian tyre manufacturing company Ceat has announced a fresh investment of Rs 1,200 crore to expand into truck and bus radial capacity, even after the second wave of Covid-19 has created a short-term disruption. The fresh investment approved by the company is over and above the Rs 3,500 crore investment announced by the company a few years ago. A part of this investment will expand the existing plant in Halol, Gujarat, and the reading fund will be used for setting up a brownfield facility in Chennai, Ceat’s base for car radial tyres. Ceat told a prominent media source that the company's truck radial facility in Halol--on the outskirts of Baroda--is expected to be utilised in a year's time, and then by then, it would need a fresh capacity in 18 months, hence the company has taken the board approval. The Rs 1,200 crore will be used in two phases, approximately half will be invested now, and the second half will be invested once the market picks up, said Ceat. For FY22, Ceat has lined up a capital expenditure of Rs 1,000 crore, which will go into specific projects on car radials, truck radial and speciality tyre sector. Despite the aggressive expansion that the company has rolled out, Ceat said it has not lost sight of financial efficiency. The company's debt has been reduced by Rs 150 crore in the last one year and has further improved the company's debt-equity ratio. Ceat delivered a strong earnings performance for FY21, with revenues posting a growth of 45% at Rs 2,290 crore, with net profit at Rs 153 crore. However, the earnings before interest, taxes, depreciation, and amortisation (EBIDTA) margin of Ceat plunged to 11.7% owing to a recent spurt in commodity prices that hit the bottom line. Image Source Also read: Tata Motors’ new-gen smart trucks

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?