Higher capex spends likely to impact tyre maker Ceat's return ratios

Muted near term outlook given raw material costs, lower demand

Tyremaker Ceat has announced an ambitious plan to boost its market share and take leadership positions in multiple categories over the next five years. The company is eyeing a market share of 30-35 per cent in the two- and three-wheeler segments as compared to 28-30 per cent now, while targeting 20 per cent from 13-15 per cent now in passenger car radials. 

The company also seeks to among top three players in the truck and bus tyre segment and grow its international business threefold over this period. While the company is a leader in two- and three-wheelers, it trails MRF and