CEAT lines up Rs 750 cr capex for FY24
Tyre maker CEAT Ltd has lined up a capex of around Rs 750 crore for the ongoing fiscal, mostly to be deployed in increasing production capacity of agri-radial tyres at its Ambernath plant in Maharashtra, according to the company MD & CEO Arnab Banerjee. The company expects volume of its supplies to original equipment manufacturers (OEMs) to pick up in the third and fourth quarter of this fiscal, as it completes transition from smaller rim size to bigger sizes, with approvals from automobile manufacturers expected soon. In the replacement market, where CEAT has seen good growth in the first quarter specially in motorcycle tyres, the company expects the momentum to continue although in the rural market which has been dormant for sometime it may take another two more quarters for growth visibility to come.
«We have been talking about Rs 700 crore to Rs 750 crore for the year. Out of which around Rs 220 crore we have done in quarter one,» Banerjee told PTI. He was responding to a query on the company's planned capex for the ongoing fiscal.
Most of the investment will be deployed in increasing production of agri-radial tyres at Ambernath plant, where the company manufactures specialty tyres. «The capacity at Ambernath will reach about 105 tonnes per day in the second quarter. The current installed capacity is around 85 tonnes per day and next year in quarter two we will reach about 160 tonnes per day,» Banerjee said.
Besides, he said there will be some miscellaneous capex for other plants, including Nagpur and Chennai and «Rs 200 crore will be routine capex». CEAT Ltd has six manufacturing plants in India located at Halol, Nashik, Nagpur, Bhandup, Ambernath and Chennai. Banerjee further said the company's OEM supplies for
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