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CEAT eyes acquisitions to expand in international markets

CEAT eyes acquisitions to expand in international markets


Tyremaker CEAT Ltd is considering inorganic routes to expand its presence in international markets, a senior official said.

“We will be open to acquisitions that make sense and add value. At the moment, our priority is to close the Camso deal, which is expected to happen in May. Post that, we will integrate the business with CEAT’s way of operations,” Arnab Banerjee, MD & CEO, CEAT, told businessline.

The company recently acquired Camso brand’s off-highway construction equipment bias tyre and tracks business from Michelin for $225 million. Camso is a premium brand with strong equity in the EU and North American aftermarket and OE segments. The business has two manufacturing facilities located in Sri Lanka, and the deal includes the facilities as well as the global ownership of the Camso brand after an initial three-year licencing period. The full cash deal is expected to be completed within six to nine months, or as mutually agreed by both companies.

CEAT also plans to expand into passenger radial tyres in the US market.

“We have started seeding the market, but serious go-to-market processes will take place in the next financial year. This financial year, we have stepped up our truck bus radial sales in the North American market, as well as off-highway tyres (OHT) sales. Next year, we will start with passenger radial tyres,” added Arnab.

In the international market, the company has a presence in the European Union, the Middle East, Latin America, and the US. CEAT introduced truck and bus radial tyres in Europe in 2022 and has increased its penetration with specialty tyres internationally. With the acquisition of Camso’s business, the tyremaker aims to expand its product portfolio, which currently includes over 900 products in the off-highway tyres and tracks segments, including agricultural equipment, harvesters, power sports tracks, and material handling tyres.

“We have a strong presence in Europe and have started investing there, as it is a growing and profitable market for CEAT. Our presence is good in Latin America, and the US is now following,” added Arnab.

Further, the company is expanding its Chennai plant to focus on export-based production, ramping up the output of truck and bus radial tyres, and later, passenger car radial tyres.





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