Tyre major CEAT plans to set up a greenfield plant in Sriperumbudur near Chennai with an estimated investment of Rs 5,000 crore to be spent over three to five years. The company had acquired 163 acre through G Square Group.
Sources in the know told FE that the company will start with passenger car radial tyres. The initial capacity per day would be around 150 tonne and the first phase of investment would amount to Rs 1,500 crore.
The company also plans to utilise the proposed plant for exports purpose. Civil work for the first phase of the project has just begun and the plant is expected to begin production in the next eight months. Both Peugot (near Chennai) and Kia Motors (in Ananthapur, Andhra Pradesh) will be other OEMs that the company will target, sources said.