: Tyre manufacturer CEAT Ltd today said it would manufacture radial tyres for lorries, buses and cars and also two-wheeler tyres in its proposed facility at Sriperumbudur near here, for which it inked a pact with Tamil Nadu Government last week.
Top management of CEAT Ltd exchanged documents with the Industries Department officials in the presence of Chief Minister K Palaniswami at the Secretariat last week for setting up the greenfield facility at a cost of Rs 4,000 crore spread over 10 years.
In a filing to BSE, the tyre manufacturer said the investments would be for "incremental manufacturing capacity of car, lorry, bus radial tyres and two-wheeler tyres."
The company board had cleared an investment of Rs 2,800 crore over five years on December 16, 2016, it said.
At a meeting on February 1, 2018, the board had approved additional investments of Rs 706 crore totalling Rs 3,506 crore, CEAT said.
"To implement the project, the company signed a memorandum of understanding with Tamil Nadu government for setting up the project, with an estimated investment of Rs 4,000 crore over a period of 10 years", it said.
In a earlier filing to the BSE, the company had said the capacity of the factory would be one million tyres for lorry, bus radial tyres, 17 million tyres for two-wheelers and six million radial tyres per annum for passenger car.
The company said the proposed investments would be funded through a 'blend of debt and equity'.
Shares of the company were trading at Rs 1,310 apiece up by 0.70 per cent over previous close on BSE.
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