 "CEAT Specialty expands globally, targets 70-30 export-domestic split")
CEAT Specialty, the off-highway tyre (OHT) division of tyremaker CEAT, is expanding its footprint in the global OHT market, aiming for a 70-30 export-domestic revenue split over the next few years. The company is increasing production capacity, investing in research and development, and focusing on sustainability to strengthen its market position.
The company exports tyres to over 100 countries, with exports currently contributing 50 per cent of total sales.
CEAT Specialty’s decision to expand internationally is closely linked to its recent decision to acquire Camso, a global leader in OHT solutions. This acquisition significantly strengthens CEAT’s presence in North America and the European Union, which are key focus areas due to their favorable margins and robust market potential.
“Our decision to focus more on our international business is closely tied to our recent definitive agreement to acquire Camso, which has significant operations in both the European Union and North America. As a result of this proposed acquisition, we anticipate a natural shift in our business split towards these regions. Additionally, these markets offer more favorable margins, which makes them an attractive focus for our growth strategy,” said Amit Tolani, Chief Executive of CEAT Specialty.
Beyond the US and Europe, CEAT is also eyeing growth in Latin America, Australia, and parts of Asia, where demand for OHTs is steadily increasing. The company’s expansion at the Ambernath plant is being driven primarily by its international business strategy.
“Our expansion plans at our Ambernath plant are internationally business-led, as we believe this direction will position us well for sustained growth while allowing us to leverage global opportunities,” Tolani added.
To support its export-driven growth, CEAT Specialty is expanding production capacity at its Ambernath plant. Additionally, with an overall production capacity of 500 tonnes per day across four plants, and an additional 350 tonnes per day from the Camso acquisition, CEAT is positioning itself for significant growth.
The company is also investing $25-30 million in R&D, focusing on digital innovation, simulation technology, and intelligent tyre solutions. It is developing tyres with embedded chips for predictive analysis in port applications and exploring airless tyre technology in collaboration with an Israeli startup.
Sustainable tyres in focus
Sustainability remains central to CEAT Specialty’s growth strategy. The company has introduced its ‘Sustained Max’ range, incorporating eco-friendly materials such as rice husk silica. Currently, sustainable materials make up 38-39 per cent of CEAT’s product portfolio, with plans to increase this to 54-55 per cent over the next two-three years.
While European consumers are more receptive to sustainable products, Tolani acknowledged that wider adoption will depend on customers' willingness to pay a premium. With the global OHT market projected to grow at a CAGR of 6-7 per cent over the next five years, CEAT Specialty’s strategic investments in exports, capacity expansion, product diversification, and sustainability position it for substantial market share growth. The company is also enhancing its dealer network and digital capabilities to strengthen its foothold in key markets.