Mumbai: Tyre major Ceat on Sunday laid the foundation stone of its Rs700 crore radial tyre plant at Halol, near Baroda in Gujarat.
“With Gujarat emerging as the next auto corridor of India, Ceat is confident this plant will give us the added mileage for increasing our market share,” Ceat vice chairman Harsh Goenka said in a statement.
The investment in the plant, which is a greenfield project, would be done in two phases.
A greenfield project signifies there is no need to remodel or demolish an existing structure.
The company would invest Rs500 crore in the first phase (2009-10) while Rs200 crore would be invested in the second phase (2011-12), the statement said.
Spread across 125 acres of land, the plant whose foundation stone was laid by Gujarat chief minister Narendra Modi, is expected to manufacture four million tyres in phase one and subsequently its capacity would be increased in the next 10 years, it said.
The plant would manufacture radial tyres for trucks, buses, light trucks and passenger cars and a substantial portion of the production would be exported, the statement said.
The plant is expected to provide employment to over 1,000 people in the first phase of operations, the press communique said.