The Hindu Business Line : Ceat to finalise plans for truck radial plant by year end

Kolkata. Nov 26 Ceat Ltd hopes to finalise its plans to set up a new truck-bus radial tyre plant by December-January. Construction of the proposed 60-tonne OTR (off-the-road) tyre factory near Patalganga is expected to begin by May next year.

According to sources, discussions are in advanced stage between Ceat and possible collaborators for the radial plant. Since the top five global tyre producers (like Bridgestone, Michelin and others) are unwilling to part with the technology, Ceat targeted the next rung of major companies (like Yokohama and Toyo of Japan; Cooper of US and Kumho and Hankook of Korea ) for access to “decent radial technologies”.

“Companies are willing to collaborate in such venture. However, there are differences with the interested parties on the mode of participation and other terms and conditions,” a source said.

While Ceat wants access to technology on payment of royalties, some of the foreign companies proposed forming joint venture where they would hold the controlling stake. There are also differences on market access.

While a compromise formula may be struck between Ceat and its potential partner in radial facility, sources rule out a situation where the foreign partner will be holding the majority stake in the joint venture or too many restrictions on market access.

In-house plans

In case the talks for technology tie-up finally fail to mature, Ceat will bank on development of own technology for the proposed radial facility.

The company has already roped in a team consultants having exposure to technologies used by global majors for such in-house technology development.

The expert team has already pointed out a few technology development processes.

“We are hoping to take a final call on our future move in regard to the radial facility by the end of this quarter or early next quarter depending on the outcome of the collaboration negotiations,” confirmed a Ceat source.

Meanwhile, Maharashtra Industrial Development Corporation (MIDC) has started land acquisition for proposed industrial estate near Patalganga where the proposed OTR facility will be located.

“We are expecting the land allotment (by MIDC) to be over latest by January-February. The construction work for the plant may begin by May” the Ceat source said.