CEAT LIMITED MOVING FORWARD WITH A FIRM GRIP

With the tyre industry expected to perform well in FY23 mainly due to easing input costs, increasing demand from original equipment manufacturers and the replacement segment, CEAT Limited is all set to capitalise on this upward spiral

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Established in 1958, CEAT Limited is the flagship tyre company of the RPG Group and is one of India's leading tyre manufacturers. RPG Group is a global diversified conglomerate with businesses in the areas of tyre, infrastructure, information technology, pharmaceuticals, energy, plantations and venture capital. CEAT has been providing world-class products for more than 60 years and has a geographical footprint in more than 110 countries globally. It produces best-in-class, high-performance tyres for a wide range of vehicles, including two and three-wheelers, passenger and utility vehicles, commercial vehicles and off-highway vehicles. 

CEAT has seven technologically advanced manufacturing plants in Mumbai, Nasik, Halol, Nagpur, Ambernath, Chennai and Sri Lanka. In FY 2021-22, despite challenges such as semiconductor shortage, crude and raw material price inflation and fluctuating demand from the market, the company utilised its production capacities up to 80 per cent across all the units. It has dedicated research and development centres at Halol in Gujarat and Frankfurt in Germany. It also has an extensive distribution network of more than 4,600 dealers, 475 distributors and over 51,000 sub-dealers. The company has taken an omnichannel approach to ensure tyre availability on all e-commerce platforms as well as through its own website, online, home delivery options, etc. It has more than 100 patent filings till date.

Sector Overview The Indian tyre industry's growth stagnated due to various external events in FY21 as compared to FY20. After two years of contraction, the Indian tyre industry witnessed recovery in FY22. Growth in FY22 was driven by increase in volumes.