Ceat Accelerates International Growth With Custom Tyres for Different Regions

According to RPG Group Vice Chairman Anant Goenka, the tyre manufacturer Ceat is creating tyres for a number of international markets in an effort to increase its exports to areas like the US and Europe and position itself as a global brand. About 20% of the RPG Group company's revenue comes from exports, and it anticipates that this percentage will increase over the coming years.

During an interview, Goenka told PTI that the company is concentrating heavily on global expansion, including growth in the US and the EU. Ceat wants to establish itself as a worldwide brand. "We frequently claim that the Indian sector might do more to build and invest in brands, global expansion, and other areas. So that's one area we're concentrating on," he continued.

Ceat Focusing on Delivering Products as Per Requirements

According to Goenka, the company is concentrating on creating tyres that meet regional specifications. "What is the customer need in Italy, and what is the customer need in Spain? The brand is developing an entire range of tyres for that specific market," said Goenka, who recently assumed the role of FICCI President. It can be for the area where wine is grown, or it might be for the specific weather in those nations.

According to Goenka, the company is testing tyres in several locations throughout Germany and the Nordic region. He went on to say that Ceat produces tyres for particular types of roads. Thus, automobiles travel on straight highways in the Middle East. Curved roads can be found across Europe. The roadways in the United States are straight. One must design tyres with all of this in consideration because the weather conditions vary as well.

Ceat Global Expansion’s Roadmap

According to Goenka, the tyre manufacturer is still highly hopeful about its future growth potential. He pointed out that Ceat is experiencing capacity issues. About 60% of it is sold in the replacement market, 20% overseas, and 20–25% to OEMs. Therefore, all industries appear to be doing well in that regard. Goenka stated that the future appears to be quite promising for the domestic tyre market as a whole.

The Goenka went on to explain that the pricing of raw materials has remained quite stable. Today, rubber costs around INR 185 per kilogramme. The price of crude has been $60 per barrel. That is Ceat’s primary raw material basket. In light of this, the demand, raw material, and margin outlooks are all generally favourable. He mentioned that by ensuring that the capacity utilisation is high, the company hopes to consolidate the Camso purchase and turn it into a strategic advantage. "We're making good use of the brand. Goenka stated, "We are preserving the brand's premiumness." For roughly USD 225 million, Ceat purchased the Camso brand from Michelin.