CEAT tyres will invest Rs300 crore to set up a manufacturing facility in Maharashtra to serve export market for off-road radial tyres.
The company reported 27.03% increase in consolidated net profit at 113.39 crore for the third quarter of current fiscal, and has already transferred its land in Ambernath, Maharashtra to its wholly-owned subsidiary CEAT Specialty Tyres Ltd (CSTL) to set up the plant.
Anant Goenka, Managing Director, CEAT said,
“Given the strong growth potential in the OTR (Off the road) sector and its synergy with CEAT capabilities, we have taken a strategic decision to increase our focus there. We will be investing Rs 300 crore for an initial capacity of 40 metric tonnes a day.”
Besides, CEAT has made an equity investment of Rs 25 crore to CSTL. CSTL has been created to ensure dedicated focus and drive towards this opportunity.
The Mumbai-based company had reported a net profit of Rs 89.26 crore for the third quarter of previous fiscal. The net sales of the company rose to Rs 1,374.03 crore as compared to Rs 1,399.11 crore for the same period of previous fiscal.
