One of the world’s leading tyre manufacturers, CEAT has recently signed a memorandum of understanding (MoU) with the Tamil Nadu government to set up Greenfield a tyre factory on the outskirts of Chennai, the state capital. According to the sources, the company has signed the MoU for a total investment of INR. 4,000 crore. According to a modest estimate, this investment is going to create about 1,000 jobs in the first phase of this project.
In its first phase, the company will manufacture around 200-250 tons of tyres per day with a focus on radials for passenger cars. As per the sources, CEAT is also focusing on creating the truck service hub in Tamil Nadu. It is learnt that the Indian tyre maker is looking to develop and strengthen its retail network in South Indian markets, and its special focus is on Tamil Nadu.
CEAT already has five operational plants in Nasik, Halol, Nagpur, Bhandup and Ambernath. This Chennai plant will be its sixth. The company also has an overseas plant in the neighbouring country of Sri Lanka.