CEAT Top Management On ₹420 Cr Capex Plan, Fundraising, Debt Strategy & More

CEAT is gearing up to expand its Chennai plant operations in response to growing demand for larger, heavier tyres driven by the rising SUV trend. Currently operating at over 80% utilization, the plant has a production capacity of around 70 lakh tyres per annum. The company aims to align its infrastructure with shifting tyre specifications by increasing upstream capacity by 60–70 tonnes, allowing it to restore its daily tyre output to ~30,000 units, adjusted for heavier configurations. CFO Kumar Subbiah confirmed the expansion will be completed over the next 18 months and primarily funded through internal accruals, though CEAT follows a general CapEx model of two-thirds debt, one-third internal accruals. In Q1 alone, CEAT spent ₹230 crore on CapEx entirely through internal funding while also reducing debt by ₹114 crore, bringing it down to ₹1,810 crore as of June-end. The company maintains a healthy leverage position and is committed to staying within a comfortable debt range. Listen in