We have ruled out sabotage: Anant Goenka

Interview with Managing Director, CEAT Tyres

The fire that broke out at CEAT’s truck tyre factory in Bhandup near Mumbai destroyed the raw material warehouse. However, the company has restarted production at the unit, which contributes a third of the company’s total output. Anant Goenka, managing director, CEAT Tyres, spoke to Swaraj Baggonkar on the incident. Edited excerpts:  

What is the loss due to the fire?

We will not be able to provide any specific estimate. But everything is insured, so we hope  to recover the amount.

What caused the fire?

The cause is still unknown. Everything is gutted. The fire department is doing a thorough investigation. We are happy with the way they are looking at the matter. We are waiting for their feedback.

What is the capacity of the plant and at what level was it running at the time of the fire?

The capacity of the plant is 250 tonnes a day and it was operating at 85-90 per cent. It is a very large plant for us, giving us a third of our output (with) Rs 2,000 crore of sales.

 

There was news that you were moving out of Bhandup altogether.

The whole speculation that we could be shutting the plant or selling the land is absolutely untrue, because we cannot take a Rs 2,000-crore cut on our sales. It’s an extremely critical plant to us.   

But wasn’t there was a proposal to shift the plant to Ambernath?

We did debate this at one point of time but as of now, the plans are on hold. There is no plan to move to Ambernath. We have acquired a piece of land in Ambernath but there is no plan to move this plant specifically. There could be another plant that could come up but there is no decision that has been taken yet.

How big is the plot in Ambernath?

We have land of about 50 acres.

 

How were the worker-management relations there?

We have 1,200 permanent workers at the plant. We have excellent relations with the workers. They were extremely supportive in making sure the damage is contained and fire is put out.

So, you have ruled out sabotage?

Yes, absolutely. Cause (of the fire) is not known but there is no reason to believe that there would be sabotage.

 

Were enough precautions not taken by CEAT?

We take all precautions. We take monthly audits with respect to safety, health or fire hazard. But these are abnormal accidents that happen. The plant is 50 years old and this has never happened in the past. It’s one of those rare cases that can happen at anybody’s plant or home and is very difficult to control.

 

Has the insurer visited the plant? Is output hit?

Yes, the insurance company has already visited the plant. There will be no sales hit because we have enough inventory. Some of it would be saved through increasing production in other plants.

And, the loss of material and civil structure, we have to look at the insurance (as to) what we will be able to claim. We are looking to see if we can avoid that loss as well. We are hoping there is no loss to the company.