Tyre maker Ceat expects Camso integration to boost its topline by 10-15%

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Tyre maker Ceat on Tuesday said it expects the Camso brand integration with itself to give a 10-15 per cent boost to its topline.

The Mumbai-headquartered firm reported revenue of Rs 13,218 crore for FY25.

Last December, Ceat entered into a definitive agreement with Michelin to acquire its Camso brand's off-highway construction equipment bias tyres and tracks business for about $225 million.

Ceat is currently in the process of integrating Camso with itself.

"Once we integrate it fully across the supply chain, the immediate topline impact could be 10-15 per cent. The bottom line impact in terms of margin accretion, etc, would take some time to kick in about four to six quarters," Ceat MD and CEO Arnab Banerjee said in a virtual press conference.

The company expects the deal to be overall margin accretive for it, he added.

The Camso acquisition, according to the tyre maker, is significant for its ambition to become a leading global player in the high-margin off-highway tyres (OHT) segment, as it will give the company access to a global customer base, including over 40 international OEMs (original equipment manufacturers) and premium international OHT distributors, along with Michelin's two manufacturing facilities in Sri Lanka.

Camso is a premium brand in construction equipment tyres and tracks with strong equity and market position in the EU and North American aftermarket and OE segments.

Ceat said it is going to focus mainly on five regions -- Europe, North America, Brazil, Australia and South Africa -- to scale up its play in the OHT segment.

The company official stated that revenues from the company's international business currently account for 19 per cent of the overall revenues and are expected to go up to 25 per cent with the integration of Camso.

The official noted that the acquisition of Camso gives Ceat entry into the construction tyres and tracks business. "So immediately, we will leverage the access to the global OEMs and the strong distribution channel that we're getting from Camso. So that would be the initial endeavour, and then we would move on to other categories," he added.

Organically, the tyre maker is also working to develop products for various other segments, including forestry and steel material handling, the official stated.