By Accommodation Times Bureau
CEAT to set up radial tyre manufacturing facility with INR 5000 cr phased investment
Chennai, October 9, 2017: JLL India, the country’s largest real estate consultancy has strategically advised and concluded a marquee transaction for CEAT – the flagship company of RPG Enterprise. The deal involved the purchase of a massive 163-acre land parcel in Chennai to set up a radial tyre manufacturing plant.
This is one of the largest industrial investments and private land acquisition arrangements in Tamil Nadu facilitated by an international property consultancy. As CEAT’s exclusive transaction advisers for this land acquisition, JLL India also facilitated the associated incentives negotiation with the Tamil Nadu Government.
The land parcel is located along the upcoming Chennai–Bangalore corridor in the industrial cluster ofSriperumbudur. This corridor commands high strategic important due to the presence of many automobile OEMs in the vicinity. CEAT plans to invest approximately INR 5,000 crore into this mega green field project in a phased manner over next 5 years. This is their first plant in South India and is expected to create over 2,000 jobs in and around the region, boosting its overall socio-economic status.
Sarita Hunt, Managing Director – Chennai & Coimbatore, JLL India said, “The primary reason for CEAT to choose Chennai – and specifically this land parcel – for this investment was the proximity to OEMs like Hyundai, Renault Nissan, Ford, Daimler, KIA, Isuzu, etc,. The local skill availability, favorable incentive structure, ecosystem for tyre manufacturing and a very proactive Government machinery were also important influencing factors. Other major investments which are underway include big names like PSA, Peugeot Citroën, Schwing Stetter XCMG, Freudenberg as well as existing companies expanding in Chennai, including Hyundai, Samsung, Ford, Foxconn and Saint Gobain.“