Ceat plans Rs 470 crore investment to expand capacity

Ceat Ltd, the flagship company of RPG Enterprises, is planning to invest Rs 470 crore to enhance tyre manufacturing capacity of the company. The company will investment Rs 420 crores for setting up a plant to manufacture 2-3 wheeler tyres with a capacity of 120 metric tonne (MT) per day. In addition, Ceat is looking at investing Rs 50 crores for implementing a project for manufacture of specialty tyres (which includes off-the-road tyres) through a subsidiary company.
 
The Board of Directors of the company has already given its approval for these two investments at its meeting held on October 30, 2014.
 
Meanwhile, Ceat has reported 7.57 per cent increase in consolidated net profit to Rs 82.35 crore for the second quarter ended September 30, 2014 compared to Rs 76.55 crore during same period last year. Ceat's total consolidated income during the quarter under review increased 7.67 per cent to Rs 1,437.77 crore as against Rs 1,335.34 crore in the year-ago period.