Ceat wants to strengthen the global game; focuses on developing tires for different markets

New Delhi: Tire maker Ceat is developing tires for various global markets as it looks to expand its exports to regions like Europe and the US with plans to establish itself as a global brand, said Anant Goenka, vice chairman of RPG Group. The RPG Group company derives approximately 20 percent of its revenue from exports and expects this contribution to grow in the coming years.

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

He noted that the company focuses on developing tires for specific requirements in a region.”What is the customer need in Italy, what is the customer need in Spain? We develop a whole range of tires for that specific market. It could be for the wine growing region, it could be for certain weather conditions in those countries,” said Goenka, who recently took over as FICCI president.

The company is testing tires in the Nordic region, in Germany, in various areas, Goenka said.

“We make tires for specific road conditions. So in the Middle East the cars drive on straight roads. In Europe there are curves. In the US they have straight roads. The weather conditions are also different, so you have to take all this into account when developing tires,” he said. Goenka said the tire maker remains very optimistic about its future growth prospects.

“We are short on capacity. We sell about 60 percent to the aftermarket, 20 percent internationally and 20-25 percent to OEMs. So in that respect, all sectors look quite positive,” he noted.

As for the overall domestic tire segment, Goenka says the future looks quite positive overall.

“Commodity prices have remained broadly flat. Rubber is currently at around Rs 185 per kg. Crude oil is at $60 per barrel. That is the most important commodity basket that we have. So to that extent, the outlook is also quite positive, both on the demand side and on the raw material and margin side,” Goenka said.

He noted that the company aims to consolidate the Camso acquisition and turn it into a strategic advantage by ensuring that occupancy rates are good.

“We are using the brand effectively. We are maintaining the premiumness of the brand,” Goenka said.

Ceat has acquired Michelin’s Camso brand for approximately $225 million.