Indian tyre maker CEAT says it has approved an investment of ?1,205 crore to expand its two-wheeler tyre manufacturing capacity by around 66% by FY31. The expansion announcement follows sustained growth in CEAT’s two-wheeler tyre business.
The investment, cleared by the company’s board, will be funded through a mix of internal accruals and debt. The expansion is intended to address capacity constraints at CEAT’s existing facilities, particularly its Nagpur plant, where utilisation has reached around 95%.
CEAT currently manufactures approximately 80,000 two-wheeler tyres per day. Under the proposed expansion, the company will add about 53,000 tyres per day in phases, taking total daily production capacity to around 133,000 tyres by the end of FY31.
The company said the additional capacity could be developed through either a greenfield or brownfield project, with the final approach to be decided after an internal assessment. The location of the expansion has not yet been disclosed.
CEAT currently operates six manufacturing facilities across India, located in Halol, Nagpur, Nashik, Ambernath, Bhandup and Chennai. The Nagpur and Chennai plants are dedicated to two-wheeler tyre production.