Ceat forays into TN with Rs 5,000-cr tyre factory

G Square is a leading land aggregation company with over 15 years of experience with knowledge of closing big land parcel deals. The company aggregated 163 acres of land parcel in about 90-days time at Kannanthangal Village, Sriperumbudur Taluk, in Kancheepuram district for setting up the green field project. 

Upon commissioning of the plant, Ceat will provide direct employment opportunity to about 2,000 people and indirect job opportunities to another 2,000 individuals. 

A source privy to these developments informs this newspaper, “This is a project for which land has been acquired after a discussion spanning six months. The land aggregator took into consideration Ceat’s budget and technical requirements before zeroing in on this land parcel. This is Ceat’s first plant in South India. The company has other manufacturing facilities in Gujarat, Nagpur and Mumbai.” 

The source adds, “The idea for choosing this region was the presence of many of the automobile OEMs here. Ceat already supplies its tyres to companies like Renault, Nissan and Ashok Leyland. Earlier, there were plans to set up this factory in Andhra Pradesh or Karnataka. However, the unavailability of a suitable land parcel in those regions, drew the company to industrial corridors in TN.” 

The source goes on to tell us, “The construction of Phase 1 of the facility is expected to be complete by the first quarter of 2019. Within four to five years, the complete factory will be set up in a phased manner. The production capacity of this plant is estimated to be 150 metric tonnes per day and this facility will be focussing on manufacturing tyres for passenger cars.” 

The expansion of the Gujarat and Nagpur plants are also going on side by side. Close to 500-600 workers could get tentatively employed in Phase 1. Once the MOU is signed with the Tamil Nadu government, the company will have more clarity on the employee potential. 

G Square Group has already delivered about 1,000 acres of land across South India to various industrial houses to set up their facilities and plants. These include JK Tyres (112 acres), Murugappa Group’s Cycle Factory (50 acres) and its Tube factory (65 acres), ELGI Rubber factory (70 acres), CCI Logistic Park (50 acres) and Asset Max Logistic Park (20 acres). The group has also aggregated lands for residential and commercial developments.