NAGPUR: Groundbreaking for first two-wheeler tire plant Ceat today said it will invest 120 over the next four years Rs 3,000 crore per month to build a production capacity of Rs 10,000 million tires.

RPG So far, the group has outsourced two-wheelers, supplied tires to a company in Hyderabad and has decided to start its own production at the suburban Putibori Greenfield plant.

Anant Goenka, Managing Director, Ceat The construction of the plant will be carried out in three phases, with the first phase expected to come on stream in April 2016 with a capacity of 1.2 million tires per month.

The company plans to invest 40 billion won in the first phase. Maharashtra Chief Minister Devendra Fadnavis laid the foundation stone.

Goenka told reporters that apart from investing in Butibori, the company has also invested in Halol plant (Rs 65 crore) and Bangladesh plant (Rs 30 crore) to increase production capacity.

Goenka said that once all three phases are completed, the Nagpur plant will create employment for 100 people.

To boost its expansion plans, the company raised Rs 4.2 crore through the QIP route on November 27th.

“The 42 being raised through QIP is only Rs 12 crore Rs one crore will be utilized for Butibori project. To meet the balance financing requirement, we will approach banks.”

After completion of the QIP, Ceat promoter shareholding has come down from 57% to 50.9% and debt equity ratio has gone up from 57% to 0.8. Goenka added that FII shareholding will also start from 19% and increase to 0.7%.

As for the impact of lower global crude oil prices, he said, “Since about 40% of our raw material comes from carbon black and nylon, the cost of production will come down after the third quarter.” Not so. “I don’t think it’s going to have any impact on our profits.”

Goenka acknowledged that the overall slowdown in the automotive industry has affected original equipment manufacturer (OEM) tire sales. Tire sales.

“The downturn in the automotive market did affect our supply to OEMs, but I would like to add that only 30% of our supply goes to OEMs and the rest goes to alternative markets, which are completely unaffected by the automotive market. impact of the recession.