Ceat's Camso buyout faces earnings, integration hurdles

Expanding footprint The Camso acquisition is likely to boost Ceat's presence in the off-highway tyre segment going ahead.

- Harsha Jethmalani

Ceat Ltd has completed the acquisition of Michelin Group's Camso Construction Compact Line Business, effective September. The integration is expected to take four to six quarters, the company said in an analyst call on Friday.

The deal, announced in December, is in line with Ceat's strategy of driving growth through premiumization, globalization and a stronger presence in the off-highway tyres (OHT) segment. Camso has an installed capacity of 250 tonnes/day, evenly split between tyres and rubber tracks, though current utilization is about 50%.