Ceat Plans Rs 4 Billion Expansion to Boost Nagpur Plant Capacity by 30%

Ceat Limited has proposed a major expansion of its Nagpur plant in Maharashtra, India, to boost production capacity by approximately 30%. With an investment of Rs 4 billion (£37.8 million), the plant's annual output will increase from 27 million to 35 million tyres, further solidifying Ceat’s position as a leader in India’s tyre industry.

The Nagpur facility, currently operating at 90% capacity utilisation, has been a cornerstone of Ceat’s manufacturing operations. The proposed expansion follows the plant’s significant achievement of producing its 100 millionth tyre in September 2024.

Once completed, the expansion will:

• Increase annual production capacity by 8 million tyres, or 30%.
• Strengthen Ceat’s ability to meet growing demand in the Indian and global tyre markets.

Part of Ceat's Broader Growth Strategy

The expansion of the Nagpur plant aligns with Ceat’s long-term strategy of scaling up production capabilities and investing in future growth. Recent highlights of this strategy include:

• FY25 Capex Plans: A Rs 1,000 crore capital expenditure is focused on increasing capacity for truck and bus radial (TBR) tyres and passenger car radial (PCR) tyres.
• Chennai Facility Investments: Ceat is adding a new TBR tyre production line at its Chennai plant, which will increase capacity by approximately 1,500 units per day.
• Expansive Manufacturing Network: Ceat operates six manufacturing plants across India, including facilities in Halol, Nashik, Bhandup, Ambernath, Nagpur, and Chennai.

Positioning in the Indian Tyre Market

With a current 12% market share in India, Ceat is leveraging these investments to further enhance its competitive edge. The expansion of the Nagpur plant reflects its commitment to meeting growing domestic and international demand while bolstering its leadership in the industry.

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