Ceat clarifies on news item regarding expansion plan

With reference to the news item appearing in a leading financial daily titled "Ceat Tyres rolls out Rs 700 crores facility", Ceat Ltd has clarified that:

1. Capacity expansion is not the immediate plan of the Company.

2. The idea of capacity expansion is still in the nascent / drawing board / discussion stages, and all aspects of the project are under evaluation.

3. After considering the pros and cons including all relevant data / information and the long term market scenario, the Company shall be in a position to take a decision on capacity expansion.

4. The evaluation is likely to take about 3-4 months.

5. The decision to undertake capacity expansion, either by way of a greenfield project or otherwise shall depend on the above evaluation.

Source : Equity Bulls

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