CEAT tyres approved an investment of approximately INR 2,800 crore, spread over a period of five years leading up to FY22. With this investment, the Company’s capacity would go up by 1 million tyres per annum for truck bus radials, 17 million tyres per annum for 2-Wheelers and 6 million tyres per annum for passenger car radials.
The investments are proposed to be funded through a blend of debt and equity. Additionally, the board has also approved the appointment of Kumar Subbiah as Chief Financial Officer of the company with effect from January 16, 2017 in place of Manoj Jaiswal, who takes over a different responsibility.
Kumar Subbiah is currently the senior vice president — materials & outsourcing of the company. He joined the company in February 2015 after spending a little over 20 years with Unilever/Hindustan Unilever where he handled various finance and commercial roles in and outside India.
Announcing the development, Anant Goenka, Managing Director, CEAT, said, “In order to boost the growth in our focused segments of 2-Wheelers and Passenger Car Radials, we are expanding capacities over the next five years. With the growth in radialization of truck segment, we have decided to increase our Truck Bus Radial capacity by 1 million tyres per annum, to maintain our market share.”