Tyre major Ceat Ltd is planning to increase its market share in the domestic market by 50% and is targeting ₹17,000 crore revenue over the next two years, said CEO and MD Arnab Banerjee.

“Currently, we have a market share of 7-8% and we would like to increase it to 12-13% over the next two to three years,” he told the media.

On Wednesday, Mr. Banerjee announced the commissioning of a ₹670-crore Truck Bus Radial (TBR) tyre plant near Chennai. In the first phase, the unit would progressively reach a production capacity of 1,500 tyres per day (TPD) over the next 12 months, which could be doubled over a period of time. Out of the product mix, 35% is meant for exports, 40% for the replacement market and 25% is for Original Equipment Manufacturers (OEMs), the CEO said.

“With this expansion, we can achieve the target. This will be done by doubling exports and focusing on replacement segment and OEM. Right now, exports account for 20% of the total revenue. The company has presence in Brazil and Latin America and is looking at South East Asia ,” he said.

The tyre manufacturer clocked a standalone revenue of ₹11,893 crore during FY24 and is aiming to achieve ₹17,000 crore by FY26.

The Chennai plant produces 4,500 TPD of Passenger Car Radial (PCR) and Motorcycle Radial tyres. Currently, the plant is operating at 75-80% of the installed capacity, said Senior Vice President – Manufacturing Jayasankar Kurruppal.

Mr. Banerjee said that a capex of ₹1,000 crore had been earmarked for FY25, of which ₹670 crore was for the Chennai TBR and PCR segment, ₹250 crore for maintenance, and the remaining for expansion of the agriculture radial project at Ambernath.