CEAT sees export growth surpassing domestic sales in FY12
RPG Group promoted Ceat Ltd expects to post higher rate of growth in exports compared to growth in domestic sales in 2011-12 because of its recently-started car tyre exports. The company was earlier exporting only traditional truck and bus tyres.
“We have just started exporting car tyres. It will add to our sales volume. We expect export revenue growth will be higher than our domestic sales growth,” said Anarb Banerjee, executive director (operation), Ceat Ltd.
Besides addition of this new segment of shipment, the export volume is also expected to go up on the back of acquisition of Ceat global brand by the company.
In November 2010, Ceat limited acquired the 'Ceat' brand from Italy-based Pirelli for nine million Euros. Earlier, Ceat Ltd had the ownership of the brand in India, Sri Lanka, Bangladesh, Myanmar, Pakistan, Bhutan, Nepal, Afghanistan and Vietnam. Pirelli was the owner of the Ceat trademark in the rest of the world.
During 2010-11, exports comprised of about 15 per cent of company's total sales of around Rs 3,500 crore, which was 24 per cent higher than 2009-10. Banerjee said, in the current financial year, Ceat topline may grow by more than 30 per cent.
The company's car tyre manufacturing facility, located at Gujarat started producing tubeless tyres three months ago. During peak operation time, the plant has the capacity to produce 300,000 car tyres and 40,000 truck and bus tyres in a month.
“Till now, we had presence only in commercial vehicle tyres. But now we will be entering into passenger vehicle tyre segment,” the Ceat official said.
To expand its service networks for passenger car tyres, the company has plans to set up service centers along highways, which will provide services such as nitrogen filling, driver training etc. The company would be spending somewhere between Rs. 35 to 40 crore for setting up of the service centers, said Banerjee.
The company has ambitious growth projection for Orissa market tyre sales, Ceat has 13 per cent market share all over India, while in Orissa, the company's market share is 25 per cent, the highest among the states.
“We hope we will be growing at 40 per cent this financial year in Orissa as its GDP has been growing at eight to nine per cent for past few years. In five years down the line, we see ourselves as a stronger market player in the state,” he said.