CEAT Kelani to invest Rs 3 bn over next two years | Page 2 | Daily News

CEAT Kelani to invest Rs 3 bn over next two years

Anant Goenka, MD CEAT Limited, India, Chanaka De Silva, Chairman CEAT Kelani Holdings, Vijay Gambhire, MD/CEO CEAT Kelani Holdings, Tilak de Zoysa, Vice President, CEAT Holdings, Ravi Dadlani, Vice President Sales, Marketing and Exports CEAT Kelani Holdings at the event. Picture by Saliya Rupasinghe
Anant Goenka, MD CEAT Limited, India, Chanaka De Silva, Chairman CEAT Kelani Holdings, Vijay Gambhire, MD/CEO CEAT Kelani Holdings, Tilak de Zoysa, Vice President, CEAT Holdings, Ravi Dadlani, Vice President Sales, Marketing and Exports CEAT Kelani Holdin

CEAT Kelani Holdings announced an infusion of Rs 3 billion in new investments for the enhancement of manufacturing capacity, new product development and growth of exports, in a significant vote of confidence in the prospects for the India – Sri Lanka joint venture tyre manufacturing operation.

The investments, made up of internal funds and borrowings, will see the establishment of a state-of-the-art plant in Kelaniya for the manufacture of Truck Bus Radials (TBRs) and the expansion of the existing cutting-edgepassenger carradial tyre plant at the same location, the company said.

New machinery already on the way from Europe, when commissioned circa June-July 2018 will commence the production of Truck Bus Radial Tyres.

The Company also plans to double CEAT Kelani’s Passenger Car Radial (PCR), Van and SUV radial tyre production from a current 500,000 tyres a year to 850,000 a year, CEAT Kelani Holdings Chairman, Chanaka de Silva told media in Colombo yesterday.

The company’s Motorcycle tyre manufacturing capacity, currently at 375,000 tyres a year, would also double as a result of the investment, de Silva disclosed.

“The first ever domestic production of Truck Bus Radials in Sri Lanka will lead to noteworthy import substitution, substantial saving of foreign exchange, the transfer of the latest international knowhow and technology for the manufacture of this category of tyre, and the launch of TBRs designed and built for local conditions”, he said.

“This new investment is part of CEAT-Kelani’s Investment Master Plan in Sri Lanka, and is projected to generate a substantial increase in turn over over the next three years from Rs 10.5 billion in 2016-17, de Silva added.”

“The joint venture’s cumulative investment in Sri Lanka to date totals Rs 5 billion.

“CEAT India is happy with the progress of the Joint Venture in Sri Lanka, which completes 20 years this year,” Anant Goenka, Managing Director of CEAT Limited India said. “Our focus now is on taking the extensive portfolio of Sri Lanka made tyres to the next level in terms of performance specifications and attributes, to keep pace with product developments in highly developed markets,” Goenka said.

CEAT Kelani Holdings Managing Director Vijay Gambhire said: “The CEAT brand currently accounts for nearly half of Sri Lanka’s pneumatic tyre requirements and exports about a third of its production in Sri Lanka. Our market share in the Passenger Car Radials segment is steady at 32%, and we enjoy a 51 per cent share of the market for Truck and Light Truck tyres.”

“The rapid ‘radialisation’ of the commercial tyre segment in Sri Lanka makes us confident that this is the ideal time to invest in expansion of production capabilities.”

Part of the investment for radials will go into upgrading tyre building equipment and techniques.

“The company also plans to increase its focus on developing products based on functional and performance platforms such as fuel saving, long tyre life and premier performance,” Gambhire added.

 


 

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