Mumbai: CEAT Ltd has approved a capital expenditure of approximately ₹1,205 crore to expand its two-wheeler tyre manufacturing capacity as demand continues to drive high utilisation levels at its existing facilities.
The company’s board on Wednesday approved the phased capacity expansion, which will add around 53,000 tyres per day by the end of FY2031.
The investment will increase CEAT’s existing production capacity of about 80,000 two-wheeler tyres per day, excluding capacities already under implementation, by nearly 66%. The company’s current two-wheeler tyre plants are operating at around 95% capacity utilisation, underscoring the need for additional manufacturing capacity.
The expansion will be implemented progressively through a combination of greenfield and brownfield projects, with the company evaluating the optimal manufacturing footprint based on internal assessments.
CEAT said the entire project is expected to be completed by the end of FY2031. The ₹1,205 crore investment will be financed through a mix of internal accruals and debt. The company said the expansion is driven by the near-full utilisation of the two-wheeler tyre manufacturing capacity at its Nagpur plant and forms part of its long-term capacity planning strategy.
The additional capacity is expected to help CEAT cater to growing demand in India’s two-wheeler tyre market while strengthening its manufacturing capabilities and supporting future growth in both domestic and export markets.
CEAT, the flagship company of RPG Enterprises, is one of India’s leading tyre manufacturers with a presence across two- and three-wheelers, passenger vehicles, commercial vehicles and off-highway vehicles. The company manufactures more than 41 million tyres annually and has a significant presence in international markets.