Jan 11, 2018 (LBO) – Sri Lankan tyre manufacturer, CEAT Kelani said they will invest 3 billion rupees in the local industry over next two years.
Unveiling its masterplan to local media the Indo-Lanka Company said it will set up a new truck bus radial tyreplant while also doubling production of radials and motorcycle tyres and grow exports.
Speaking about the company’s entry into new markets it said that exports to the United States of America will commence soon.
“We expect to have the first batch of exports to the USA to be ready for shipping by next month,” Chanaka De Silva, Chairman of CEAT Kelani Holdings told Lanka Business Online.
The new fund infusion made up of internal funds and borrowings, will see the establishment of a new plant in Kelaniya for the manufacture of Truck Bus Radials (TBRs) and the expansion of the existing passenger car radial tyre plant at the same location.
New machinery already on the way from Europe, by June-July 2018 we will commence the production of TBR tyres, De Silva said.
The Company also plans to double CEAT Kelani’s Passenger Car Radial (PCR), van and SUV radial tyre production from a current 500,000 tyres a year to 850,000 a year, he futher added.
“The company’s Motorcycle tyre manufacturing capacity, currently at 375,000 tyres a year, would also double as a result of the investment.”
This new investment is also projected to generate an increase in turn over the next three years from 10.5 billion rupees in 2016-17.
Also addressing the media Anant Goenka,managing director of CEAT Limited India, and CEAT Kelani Holdings managing director Vijay Gambhire said that the Joint Venture is one of the most successful ventures benefitting from the Indo-Lanka FTA.
CEAT India is happy with the progress of the Joint Venture in Sri Lanka, which completes 20 years this year, Goenka said.
“Our focus now is on taking the extensive portfolio of Sri Lanka made tyres to the next level in terms of performance specifications and attributes, to keep pace with product developments in highly developed markets,”
“CEAT India has already gone down this road, and CEAT Kelani enjoys the benefit of our technological knowhow and market experience.”
The CEAT brand currently accounts for nearly half of Sri Lanka’s pneumatic tyre requirements and exports about a third of its production in Sri Lanka while its market share in the Passenger Car Radials segment is steady at 32 per cent.
The Company also have a 51 percent share of the market for truck and light truck tyres.
“The rapid ‘radialisation’ of the commercial tyre segment in Sri Lanka makes us confident that this is the ideal time to invest in expansion of production capabilities,” Gambhire said.
“The company also plans to increase its focus on developing products based on functional and performance platforms such as fuel saving, long tyre life and premier performance.”
CEAT Sri Lanka exports to 15 countries in South Asia, the Middle East, Africa and the Far East.