ranjit | Feb 19, 2018 | 0
CEAT to set up INR 50 billion radial tyre manufacturing plant in Chennai, India
RPG Enterprise flagship company CEAT India will set up a radial tyre manufacturing facility with INR 50 billion phased investment in Chennai, India. The land parcel is located along the upcoming Chennai–Bangalore corridor in the industrial cluster of Sriperumbudur. This corridor commands high strategic importance due to the presence of many automobile OEMs in the vicinity. Real estate consultant JLL India has facilitated the 163-acre land transaction for CEAT in Chennai.
This is one of the largest industrial investments and private land acquisition arrangements in Tamil Nadu. CEAT plans to invest around INR 50 billion into this mega green field project in a phased manner over next five years. This is their first plant in South India and is expected to create over 2,000 jobs in and around the region, boosting its overall socio-economic status. As CEAT’s exclusive transaction advisers for this land acquisition, JLL India also facilitated the associated incentives negotiation with the Tamil Nadu Government.
“The primary reason for CEAT to choose Chennai – and specifically this land parcel – for this investment was the proximity to OEMs like Hyundai, Renault Nissan, Ford, Daimler, KIA, Isuzu etc. The local skill availability, favorable incentive structure, ecosystem for tyre manufacturing and a very proactive government machinery were also important influencing factors. Other major investments which are underway include big names like PSA, Peugeot Citroën, Schwing Stetter XCMG, Freudenberg as well as existing companies expanding in Chennai, including Hyundai, Samsung, Ford, Foxconn and Saint Gobain,” said Sarita Hunt, Managing Director – Chennai & Coimbatore, JLL India.