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CEAT, RPG Group’s flagship company, is going to invest INR 4,000 crore in a Greenfield tyre manufacturing plant in India’s southern city of Sriperumbudur in Tamil Nadu. The project has been recently cleared by the Tamil Nadu state government, which also offered a structured incentive package for the plant that will directly employ around 1,000 people. The plant is expected to be operational by the second half of 2019.
This new manufacturing unit of CEAT tyres will give a big boost to the state which has witnessed poor investment of late. Earlier, the state has lost to Andhra Pradesh, which has been chosen by the Kia Motors for setting up their first passenger car plant in the country.
According to a source close to the deal, it is expected that the project will start off soon later this year. The company is also targeting to supply automobile OEM to the companies located near the state capital Chennai, including Nissan, Hyundai, Ford, Renault, Ashok Leyland, Bharat Benz, Yamaha and Royal Enfield. CEAT not only plans to supply tyres to the units established in Tamil Nadu, but also in other parts of the country.
In addition to the aforementioned incentives, the Tamil Nadu state government has assured CEAT tyres of continuous water and power for their plant. To complete this assurance, a pipeline is being laid to connect Sriperumbudur to this plant, so that treated water can be supplied to this new manufacturing unit.
