CHENNAI: Property consultant JLL India said on Monday that tyre maker CEAT has acquired 163- acre land in Chennai to set up a manufacturing plant for radial tyres.
JLL, which facilitated the transaction for CEAT, said the tyre-maker plans to invest Rs 5,000 crore in the project in the next five years.
“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,” JLL said in a statement.The consultant, however, did not share the deal value of this land.CEAT is the flagship company of RPG Enterprise.
The JLL statement said that the land parcel is located along the upcoming Chennai- Bangalore corridor in the industrial cluster of Sriperumbudur.This corridor has presence of many automobile OEMs (original equipment manufacturers).“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,” JLL said.
Sarita Hunt, MD – Chennai & Coimbatore, JLL India said, “The 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.”
Influencing factors
The local skill availability, favourable incentive structure, ecosystem for tyre manufacturing and a very proactive government