CEAT Invests ₹450 Cr to Boost Chennai PCUV Tyre Capacity 🚗

Hey tyre enthusiasts and investors! 👋 Big news from CEAT Limited, one of India’s leading tyre manufacturers. The company’s Board of Directors recently gave the green light to a significant capital expenditure plan that’s all about gearing up for future growth.

CEAT is set to invest a substantial ₹450 crore into its Chennai plant, located in Kannanthangal, Maduramangalam Post, Sriperumbudur TK, Kancheepuram. The goal? To boost its production capacity for Passenger Car Utility Vehicle (PCUV) tyres by an impressive 35% of the current capacity at this facility.

Currently, the Chennai plant churns out about 70 Lakh Tyres per annum, operating at a healthy 80% utilization. This expansion is a clear signal that CEAT sees strong demand ahead, especially in the PCUV segment, which already contributes a significant portion to their product mix. The company expects to have this new capacity up and running by the end of FY 2027.

So, how’s this big investment being funded? CEAT plans to use a smart mix of internal accruals (their own generated profits) and debt, ensuring a balanced approach to financing this growth. This move is strategically aimed at progressively adding capacity to service the anticipated future demand in the PCUV category, a segment that’s expected to see good growth in the medium term.

It’s an exciting time for CEAT as they continue to forge their own road, investing in the future of mobility. The last traded price for CEATLTD was ₹3869, down slightly by 0.2% before the market closed. This expansion highlights CEAT’s commitment to strengthening its market position and meeting the evolving needs of the automotive industry. Keep an eye on those wheels! 🚀

source: Corporate Announcement

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