Ceat Tyres, the flagship company of RPG Enterprises, is setting up a new plant at Butibori, Nagpur. The facility will be set up in three phases. At the foundation stone laying ceremony for the plant the company announced that it will be investing Rs. 400 crore in the first phase (2014 - 2016).

The new plant will be spread over 60 acres of land and will manufacture two and three-wheeler tyres. It will use automated machinery and is expected to have an output of 1.2 million tyres. With the new plant, Ceat is looking to double its capacities within two years and increase its market share. The company believes that the plant gives it an advantage of reduced logistics cost since it is located at a central location.

The plant's production process will have the certification of ISO 14001 for environment management system and OHSAS 18001 for safety, health and environment. The first tyres are expected to be rolled out from the plant in April 2016.