CEAT Tyres today announced its plans to invest ₹ 400 crore in a state-of-the-art tyre plant in Butibori, Nagpur. Devendra Fadnavis, Chief Minister of Maharashtra, laid the cornerstone for the plant that will be set up in three phases. In the first phase (2014- 2016), ₹ 400 crore will be invested.
Post the completion of phase one of the plant, the first tyre will rollout by April 2016. Spread across 60 acres of land, the plant is expected to manufacture 1.2 million tyres. The new plant will have highly automated manufacturing machinery chosen from the world market. The two wheeler production volumes are expected to double in the next two years owing to the capacity.
Anant Goenka, Managing Director, CEAT Ltd. said, "With this plant we are looking to double our capacities within two years. This will give us the added impetus to increase our market share. Butibori gives us great advantage of reduced logistics cost and a plant in a central location."