Ceat Expands Globally: Tyres for Specific Markets

New Delhi, Dec 7 (PTI) Tyre maker Ceat is developing tyres for various global markets as it aims to expand its exports to regions like Europe and US with plans to establish itself as a global brand, according to RPG Group Vice Chairman Anant Goenka.

The RPG Group firm garners around 20 per cent of its revenues from exports and expects the contribution to grow over the next few years.

"We are focusing a lot on international growth -- in the US, growth in the EU. Our goal is to become a global brand. We often say that industry in India can do more to develop and invest more in brands, invest in global growth and so on. So that's one area of focus for us," Goenka told PTI during an interaction.

He noted that the company is focussing on developing tyres on specific requirements of a region.

"What is the customer need in Italy, what is the customer need in Spain, we are developing an entire range of tyres for that specific market. It could be for the wine growing region, it could be for certain weather conditions in those countries," Goenka, who recently took over as FICCI President, stated.

The company is testing tyres in the Nordic region, in Germany, in different areas, Goenka said.

"We make tyres for specific road conditions. So in the Middle East, the cars go on straight roads. In Europe, there are curved roads. In the US, they have straight roads. The weather conditions are also different, so you have to develop tyres keeping all this in mind," he said.

Goenka said the tyre maker remains very optimistic about growth prospects going ahead.

"We are finding ourselves short on capacity. We sell about 60 per cent in the replacement market, 20 per cent internationally, and 20-25 per cent to OEMs. So to that extent, all sectors are looking fairly positive," he noted.

On the overall domestic tyre segment, Goenka said overall the future looks fairly positive.

"Raw material prices have been largely flat. Rubber is at about Rs 185 per kg today. Crude has been at USD 60 per barrel. That's the key raw material basket that we have. So to that extent, the outlook is also fairly positive from the demand side as well as raw material and margin side," Goenka said.

He noted that the company is looking at consolidating the Camso acquisition and converting it into a strategic advantage by making sure the capacity utilisation is good.

"We are leveraging the brand effectively. We are maintaining the premiumness of the brand," Goenka said.

Ceat acquired Michelin's Camso brand for about USD 225 million.