*Halol (Gujarat): *The Rs 13,500-crore turnover RPG Group will invest Rs 1,500 crore in its Ceat radial tyre plant with an initial capacity to make four million tyres for different categories of four-wheelers.
The first phase of the greenfield plant at Halol in the Panchmahals district, near Vadodara, would involve an investment of Rs 700 crore. It would create jobs for about 1,000 people at the new facility. For this plant, the company would be using technology from the US and Europe, unlike its current use of technology of Yokohama Rubber, Japan. RPG expects to capture 15 per cent market share in India once this plant goes on stream next year. In the second phase, the capacity would be increased by about four to five times with an investment of another Rs 800 crore. About 25-40 per cent of this production would be exported. The company is also looking for ports such as Mundra and Dahej for exports to West Asia, Europe, Africa and Europe. However, Ceat Ltd has no plans to have its own private terminal or jetty. The ports of Gujarat would also facilitate import of raw material. Ceat is currently exporting tyres to 40 countries as 80 per cent of tyres now used globally are radial. The company is also in talks with Tata Motors and General Motors for use of Ceat tyres in their vehicles. "We intend to participate with their ventures," said RPG Enterprises Chairman, Harsh Vardhan Goenka, here. Replying to queries from reporters, he said Ceat Ltd has already reduced prices twice in the last one month in view of market conditions and reduction in rubber prices. Additionally, he said, RPG Group would soon be foraying into premium bakery, coffee and tea businesses. Starting with its first store in Bangalore in June this year, the company would open 200 stores across India, for which it has tied up with the US giant Awboupain. Asked about the RPG Group's retail chain, Spencer's, facing rough weather in Gujarat, he admitted that it had not particularly proved very successful in Ahmedabad but the company is going ahead with its plans to open more stores elsewhere in this State and the country. The RPG Group has so far invested around Rs 2,500 crore in Gujarat on its different projects, he said. At the foundation stone unveiling function for the Ceat plant here, Goenka said the Group has recently proposed fresh investments of Rs 1,050 crore in Gujarat, and signed four MoUs during the Fourth Vibrant Gujarat Global Investors Summit 2009 early this month. These were signed by Group companies Ceat Ltd, Raychem RPG, RPG Life Sciences and RPG Cables. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
