CEAT’s Board of Directors has greenlit a capital investment of ₹400 crore to expand production capacity at its Butibori plant in Nagpur, Maharashtra. This strategic move is expected to boost the plant’s output by approximately 30% over its current capacity of 270 lakh tyres per year, which is already operating at 90% utilization.
The expansion is projected to be completed by the end of the 2027-28 fiscal year. CEAT plans to fund the investment through a combination of internal accruals and debt.
The initiative comes in response to anticipated growth in demand within the Indian two-wheeler and three-wheeler market. CEAT aims to meet this rising demand by progressively increasing capacity, ensuring a steady supply to cater to the market’s future needs.
This decision underscores CEAT’s commitment to scaling its operations and supporting the growing mobility sector in India.
