CEAT Ltd has six manufacturing plants in India located in Halol, Nasik, Nagpur, Bandhup, Ambarnath and Chennai.

Tire maker CEAT Ltd has earmarked about Rs 7.5 crore of capital expenditure in the current fiscal for increasing the capacity of radial tires, which are mainly used in agriculture.Arnababa Managing Director and Chief Executive Officer Banerjee The company’s Ambernath plant in Maharashtra. The company expects Original Equipment Manufacturer (OEM) supply to increase by the end of this fiscal as rim sizes change from small to large and is expected to get approval from automakers soon. Soldier.

In the alternative markets, CEAT saw good growth in the first quarter, especially in motorcycle tires. While a period of dormancy in rural markets can take up to two years, the company expects the momentum to continue. Take some time to realize this. There are more quarters ahead with higher visibility of growth.

Banerjee told PTI: “We have been talking about Rs 7,070 crore to Rs 7,510 crore this year. We realized Rs 222 crore in the first quarter.”

He was responding to a question on the company’s planned capital expenditure for the current financial year.

The majority of the investment will be used to increase production of agricultural radial tires for the production of specialty tires at the Abernathy plant.

“Production at Ambernath will reach about 105 tons per day in the second quarter,” Bain said. Current installed capacity is about 85 tons per day and will reach about 160 tons per day in the second quarter of next year.”

In addition, he said there would be some other capex for other plants, including Nagpur and Chennai. “Rs 20 crore will be the regular capex.”

CEAT Ltd has six manufacturing plants in India located in Halol, Nashik, Nagpur, Bandhup, Ambarnath and Chennai.

Angel also said that the company’s OEM supply of passenger car tires declined in the first quarter and is expected to decline in the second quarter as well, as the company shifts its products from smaller rim sizes to larger rims. There will be some recovery in the fourth quarter.

He added, “We are getting a lot of approvals and are fully aware of what’s going on in the third and fourth quarters, so our sales will recover and our share of the passenger car tire business will return to normal levels.” Future CEAT wheel sizes will be between 16 and 18 inches.

The motorcycle tire replacement market grew well in the first quarter, he said.

“The demand for 50,000-odd people (mainly in the urban segment) is favorable for motorcycles, but we are yet to see growth in rural demand. This market has been dormant for a long time and growth remains to be seen. “It starts from here,” he said.

On the reasons for the shrinking rural market, Banerjee said that while agriculture in the rural economy is performing well, the small trade sector of the rural economy, which depends on employment and remittances, is yet to recover. Post Corona Era.

As a result, they are postponing the purchase of two-wheelers even though they are commuter vehicles. he added. People delay buying two-wheelers and they delay buying tires.” . He added that it is important to understand how the normal rainy season affects the region. It permeates the entire rural economy.