Ceat plans to invest ₹450 crore to expand capacity at Chennai plant

CHENNAI: Ceat, the flagship company of RPG Enterprises, plans to invest ₹450 crore to expand existing capacity at its plant in Sriperumbudur.

The Chennai plant has a current capacity of about 70 lakh tyres per annum, and the existing capacity utilisation is about 80%, the company said in a stock exchange filing.

The company said it will add 35% to the existing capacity specifically in the passenger car utility vehicle segment (PCUV) which is expected to come up by the end of financial year 2027. 

Good growth is expected in medium term in PCUV Category. This investment is intended to add capacity progressively, to service the anticipated future demand, Ceat said.

 The investment will be funded by way of mix of internal accruals and debt, Ceat said.