CEAT's Board of Directors has granted approval for a capital expenditure proposal of Rs 400 crore to enhance production capacity at its plant in Butibori, Nagpur, Maharashtra.

The plant, currently operating at about 90 percent of its existing capacity of 270 lakh tyres per annum, is set to increase its capacity by approx. 30 percent. 

This expansion is scheduled for completion by the end of FY 2027-28. The proposed investment will be financed through a mix of internal accruals and debt.

This move aligns with the anticipated growth in the Indian two-wheeler and three-wheeler market, which the company expects to see significant short- to medium-term demand increases.

This investment is intended to add capacity progressively, to service the anticipated future demand.