The foundation stone for Ceat’s Rs 700 crore radial tyre plant at Halol (about 40km from Baroda) was laid today by the Gujarat Chief Minister, Narendra Modi. Also present at the function were RPG Enterprises chairman, Harsh Goenka, and Ceat’s Managing Director, Paras K Chowdhary
This plant, a greenfield project, will provide employment to over 1,000 people in the first phase of operations, which is 2009-2010. The first tyre from the plant will roll out by May 2010. The Ceat radial tyre plant will be spread across 125 acres of land and is expected to manufacture four million tyres in phase 1. Subsequently, the capacity will be increased to 12 million in the next 10 years.
The investment of Rs 700 crore from Ceat will be made in two phases – in the first phase (2009-2010), Rs 500 crore will be invested, and Rs 200 crore will be invested in the second phase (2011-2012). ‘We welcome Ceat into our state. Ceat is a new plant and will add to the economy of the state. We wish them all the best,’ said Modi, speaking on the occasion.
‘Halol was the perfect site because of the support Ceat received from the administration, the State’s friendly industrial policy and infrastructure support such as gas from GSPL, water from the Narmada canal and power from GSEB’s local substation which is located just 500 metres away from the site. Proximity to the port will help CEAT with the convenience of procuring the raw material and exporting tyres. Halol being a ‘no octroi zone’ will add to the low cost of production and help in focusing on a higher per man hour output,’ said Chowdhary.
The new plant will manufacture radial tyres for trucks, buses, light commercial vehicles and passenger cars. A substantial percentage of the total production (about 25-40%) is slated for export.