Established in 1958 CEAT Limited is the flagship company of RPG Group. It is one of the largest tyre manufacturers in India in revenue and produces over 33 million tyres a year. The company produces high-performance tyres for a wide range of vehicles. CEAT's product portfolio spans across the automotive spectrum with tyres for Two-Three Wheelers Passenger Car & Utility Vehicles (PC/UV) Trucks and Buses (T&B) and Off-the-road Vehicles. The company has a strong presence in global markets selling its products in over 100 countries and offers a wide range of tyres in all segments. CEAT's strategic focus areas include the two-wheeler segment passenger car segment truck &bus radial off-the-road business and sales to emerging markets.The company's network currently extends to more than 4500 dealers and over 30000 sub-dealers. The company currently has 4 manufacturing facilities at Bhandup Nashik Nagpur and Halol and is setting up a green field project. It has its representative offices at Indonesia Germany and the United Arab Emirates to serve customers in foreign markets. CEAT Specialty Tyres Limited (CSTL) a wholly owned subsidiary of the Company is engaged in manufacturing and sale of tyres for off-the-road vehicles and equipments which find application across industries including ports construction mining and agriculture. CSTL has set up an overseas subsidiary viz. CEAT Specialty Tires Inc. in USA.CEAT operates in Sri Lanka through a 50:50 Joint Venture (JV) named CEAT Kelani Holdings Company (Private) Ltd. Through CEAT Specialty Tyres Limited its wholly-owned subsidiary CEAT has an off-highway tyre manufacturing plant at Ambernath Maharashtra which commenced commercial production in FY 2017-18. CEAT has invested heavily in the development of a state-of-the-art R&D centre at Halol to enable a funnel of innovative new products.Ceat Ltd was incorporated in the year 1958 as Ceat Tyres of India Ltd in collaboration with Tata Group. The company was established with the main object to construct produce prepare manufacture press vulcanize repair retread purchase sell import and to deal in tyres semi-tyres for all types of vehicles and inner tubes flaps and repairs material in general. Over the last 50 years the company has established a strong presence in both the domestic and the international markets.In February 22 1960 the first tyre rolled out from the company's factory at Bhandup in Mumbai. In the year 1972 they set up a Research and Development unit at their plant in Bhandup. In the year 1981 Deccan Fibre Glass Ltd was amalgamated with the company with effect from June 1 1981.In the year 1982 the RPG Group acquired the company. The company along with the Pradeshiya Industrial and Investment Corporation of UP Ltd. promoted a joint venture company namely UPCOM Cables Ltd in technical collaboration with Ceat Cari of Italy.During the year CTI Investments Ltd Ceat Investment Ltd and Ceat Finance Co Ltd became the wholly owned subsidiaries of the company. The company also entered into a collaboration agreement with Yokohama Rubber Company of Japan in order to keep abreast of the technological progress in the tyre industry as also to develop radial tyres suitable to the Indian road conditions. In the year 1983 Atlantic Holdings Ltd and Malabar Coastal Holdings Ltd became the subsidiaries of the company. In the year 1987 the company entered into a technical collaboration agreement with Toray Industries Inc of Japan for setting up a factory for the production of nylon industrial yarn/cord and nylon tyre cord fabric at Malanpur in Madhya Pradesh.In the year 1988 the company entered into an agreement with Boseki Co Ltd Japan for improved technology for expansion of the licensed capacity of the fibre glass division to 5000 tonnes per annum. In August 1988 Meteoric Industrial Finance Co Pvt Ltd became a subsidiary of the company and in July 1989 Murphy India Ltd amalgamated with the company. The company changed their name from Ceat Tyres of India Ltd to Ceat Ltd on January 10 1990. In the year 1993 the company entered into a collaboration agreement with Yokohama Rubber Company of Japan for the manufacture of Tyres at Nasik plant. In the year 1996 the company launched a new radial car tyre 'Maestro' the first radial tyre in India to use state-of-the-art polyester tyre cord technology combined with steel belts. They also launched a new heavy-duty product 'Stamina' which is a light commercial vehicle tyre. The radial tyre plant has commenced commercial production in Nasik and the formula one radial tyre was received in the market. Ceat is the first tyre company in India was awarded the International accreditation ISO/TS 16949 - 2002 Quality Standard Certification. The company entered into agreement with Pirelli of Italy for outsourcing radial tyres which were marketed in the brand name CEAT Spider RadialsDuring the year 2004-05 Malabar Coastal Holdings Ltd ceased to be a subsidiary company with effect from January 1 2005. During the year 2005-06 CEAT Ventures Ltd CEAT Holdings Ltd and Meteoric Industrial Finance Company Ltd the wholly owned subsidiary companies amalgamated with the company with effect from April 1 2006. During the year 2006-07 Associated Ceat Kelani Venture the joint venture company in Sri Lanka commissioned their radial plant. During the year 2007-08 the company proposes to set up two grassroot plants one in Maharashtra for Specialty Tyres and the other for Radial Tyres for Cars Utility Vehicles and Trucks at a total capital outlay of about Rs 900 crore. In March 2008 the company sold nearly seven acres of surplus land at Bhandup in Mumbai for Rs 1.3 billion. During the year 2008-09 the company successfully implemented the scheme of arrangement and consequently the investment undertaking of the company was transferred to CHI Investments Ltd with effect from July 1 2007.The company is in the process of setting up a plant in Halol Gujarat with the initial capacity of 90 mt per day and a planned outlay of approximately Rs 500 crore. The plant is expected to be ready for commercial production during the financial year 2010-11.CEAT has continuously focussed on new product launches and launched over a 100 new products in FY 2013-14. Product ranges like `Gripp LN (low noise)' for passenger car radials and `Zoom' for motorcycle tyres have been very successful. During the year under review the company launched the Dhoom 3 branded high-speed special-edition tyres and also released video games based on the box-office monster. Its new Dhoom 3 tyre is targeted at the younger segment and has provided a boost to the company's image as a quality tyre manufacturer.CEAT's R&D division rolled out over a hundred products between Sri Lanka and India across categories in FY 2013-14.CEAT achieved a full ramp up of its Halol radial facility with 80 percent of its capacity utilisation in FY 2014.During the year under review Rado Tyres Limited became a subsidiary of the company pursuant to the Order dated August 5 2013 passed by the Board of Industrial and Financial Reconstruction.During the year under review CEAT deferred a certain portion of its current maturities of long-term debt through fresh long-term funds thereby improving the current ratio compared to the previous year. The company's robust performance enabled it to fetch a two-notch upgrade in the external credit rating assigned to its debt program from BBB to A by FITCH India Ratings. This will further strengthen the creditworthiness of the company in the market and help it improve on its finance cost.Pursuant to the special resolution passed by the company's shareholders through Postal Ballot on March 7 2012 CEAT had on March 12 2012 issued and allotted 1712176 Warrants to one of the Promoter Group Companies viz Instant Holdings Limited (Instant) on a preferential basis convertible into an equal number of equity shares of face value of Rs 10/- each at a price of Rs 85.03 per Warrant. Of the said price 25% was received upfront at the time of allotment. The Warrants were convertible into equity shares at the option of the allottee within a period of 18 months from the date of allotment i.e. by September 11 2013. The allottee exercised its option for conversion of the said Warrants by paying the balance 75% i.e. Rs 63.77 per Warrant and accordingly the said Warrants were converted in to 1712176 equity shares and allotted to Instant on July 23 2013. These 1712176 equity shares were listed on the BSE Limited and the National Stock Exchange of India Limited on August 27 2013. CEAT continued its focus on development of new products and launched a number of new products in FY 2014-15 which included tubeless tyres for 2-Wheelers new size introduction for compact SUVs and off-road biking tyres. These products have received good responses in their respective markets and segments and contributed to 27% of the turnover. For CEAT's R&D division the focus for the year was on developing products with superior grip manifested in the dry and wet surface braking distance to promote user safety without compromising on comfort.CEAT Shoppe network an exclusive retail channel of the company reached closed to 200 outlets as compared to 125 plus outlets at the end of March 31 2014. Further to increase the reach to replacement market in lower pop strata the company has also expanded its presence in the sub-urban and rural areas mainly for 2-wheeler and passenger car tyres. As a result of this distribution drive the number of districts covered has gone up to 460 from almost 375 in last financial year.During the year under review CEAT embarked on a major capital expenditure programme to manufacture four wheeler passenger vehicle tyres and two/three wheeler tyres at its manufacturing facilities at Halol and Nagpur. CEAT Specialty Tyres Limited (CSTL) became a wholly owned subsidiary of CEAT with effect from 8 December 2014. Its business is manufacture and sale of tyres for off- the-road vehicles/equipment which find application across industries including port construction mining and agriculture.During the year under review CEAT had pursuant to the special resolution passed by the members at the AGM held on September 26 2014 and through Postal Ballot on November 24 2014 issued and allotted 4494382 equity shares at a price of Rs. 890/- per share aggregating to Rs. 40000 Lacs to the eligible investors by way of Qualified Institutional Placement in accordance with the Chapter VIII of the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2009 (ICDR). The said shares were listed on the BSE Limited and the National Stock Exchange of India Limited on December 1 2014.During the financial year ended 31 March 2016 CEAT launched a total of 70 new products. Notable product launches from CEAT in FY 2015-16 were Milaze FuelSmarrt CZAR Sport in PCR/UVR and Zoom Rad Gripp XL Pro Gripp and Milaze TL in the two-wheeler vehicle category. With regard to new product development the high point for the year under review was product developments with superior grip manifested in the dry and wet surface braking distance to promote user safety without compromising on comfort.With an objective to penetrate further and improve customer reach the Company continued to expand its distribution network. Further to increase the reach in replacement market with lower population strata the company has expanded its presence in the smaller towns and rural areas through an extensive distributor network mainly for two-wheeler and passenger car tyres. As a result the number of districts covered has gone up to over 600 from around 460 in FY 2014-15. One key milestone for the company in the year gone by was adoption of its new purpose Making Mobility Safer and Smarter Every dayCEAT commissioned a greenfield unit for manufacturing two-three wheeler tyres at Butibori near Nagpur Maharashtra in March 2016. The company had undertaken expansion of capacity at its Halol Plant by 120 MT/day for manufacturing with a capital outlay of Rs. 650 Crores which is expected to be fully ramped up by first quarter of FY 2017-18. Towards this CEAT already commissioned a capacity of 39 MT/day by the end of March 2016.In another key investment made during FY 2015-16 CEAT through its subsidiary CEAT Specialty Tyres Limited (CSTL) invested in capacity for Off Highway Tyres (OHT) at Ambernath. The Ambernath land was transferred to CSTL in Q3 of FY 2015-16. During the year under review CSTL commenced trading in Off- Highway tyres and sources these tyres from CEAT.CEAT has been following an asset-light approach for its manufacturing to conserve capital and increase returns to shareholders. Over the years the company's outsourcing business has grown substantially both in terms of volumes and quality systems. Focus at the outsourcing units continues to be on two and three-wheeler vehicle tyre categories. During the year under review CEAT's key OEM customer gave their approval to the company's outsourcing locations which indicates their confidence in the quality of control systems initiated by the company at the partner locations.During the year under review CEAT's long term credit rating improved from A+ to AA- by its rating agencies viz. CARE and India Ratings (Fitch). The rating of AA- indicates high degree of safety regarding timely servicing of financial obligations and very low credit risk.During the financial year ended 31 March 2017 CEAT launched a total of 92 new products across different product categories. A breakthrough innovation in the form of `Puncture Safe' motorcycle tyres was launched to address a key pain area of customers. The company has filed a patent for the same. In the Truck and Bus Radial (TBR) segment the company launched the WIN Series and grew by 15% in the TBR replacement market. During the year under review the company continued its efforts for channel expansion in a bid to maximise customer reach.In FY 2016-17 CEAT gained acceptance with premium brands in the OEM category viz. Royal Enfield Himalayan Bajaj Vikrant Honda Navi and Tork in two-wheelers and Verna Refresh i10 refresh Renault Sedan/ SUV and Nissan SUV in the PC/UV category.During the year under review CEAT completed the capacity expansion undertaken at its Halol Plant and ramped the capacity to 120MT/day. The company also set-up a green field manufacturing plant at Nagpur with an initial capacity of 120 MT/day for manufacture of two-three wheeler tyres at a capital outlay of Rs 420 crores. During the year under review CEAT `s wholly owned subsidiary CEAT Specialty Tyres Limited (CSTL) commenced setting up of its green field facility at Ambernath in the State of Maharashtra with an initial capacity of 40 MT/ day which would subsequently be ramped up to 100 MT/day in the next phase.Several marketing initiatives including Overdrive Kwid Drive from Delhi to Paris MTV Roadies MTV Chase the Monsoon and Mahindra Adventure were undertaken during the year. The company also strengthened its brand association with cricket through a bat endorsement by Ajinkya Rahane.During the year under review the long term credit rating of the company improved from AA- to AA with Stable outlook by its rating agencies viz. CARE and India Ratings (Fitch). The rating of AA indicates high degree of safety regarding timely servicing of financial obligations and very low credit risk. A `Stable' outlook indicates expected stability (or retention) of the credit ratings in the medium term on account of stable credit risk profile of the entity in the medium term. During the year under review CEAT discontinued its Fixed Deposit Scheme and repaid all the outstanding fixed deposits along with interest accrued up to 30 September 2016.During the financial year ended 31 March 2018 CEAT became the first tyre company in the world outside Japan to receive the Deming Prize in 2017. The Deming Prize recognises companies that achieve business transformation by implementing Total Quality Management (TQM). The Deming Prize reinforces and consolidates the company's reputation as a high-quality producer of tyres and enables the company to gain ideal partner status for leading automobile companies in the world.During the year under review CEAT developed 65 new products. The company set up its European technical Centre at Frankfurt Germany to focus on break through products for customers and focus on passenger segment. During the year under review CEAT through its wholly owned subsidiary CEAT Specialty Tyres Limited commenced commercial production at the Ambernath plant for manufacture of off-the-road tyres for the specialty segment.During the year under review the company has launched a new safety initiative CEAT Safety Grip yet another step towards `making Mobility Safer and Smarter Everyday'. To overcome the common problem of tyre slippage faced by farmers the company's Aayushmaan tyres offered superior grip leading to better yield and efficiency.During the year under review Tyresnmore Online Private Limited (TNM) a private limited company incorporated on June 2 2014 having its registered office in New Delhi engaged in the business of selling automotive tyres accessories and providing services of installing fitting wheel balancing and wheel alignment for automotive tyres became an associate company of CEAT. On 23 June 2017 CEAT acquired approximate 31.93% of the fully diluted share capital of TNM by investing Rs 400 lacs through subscription of 50855 Compulsorily Convertible Preference Shares (CCPS) of face of Rs 1 each and 100 Equity Shares of face of Rs 1 each of TNM.During FY 2017-18 CEAT initiated a European Tech Centre in Frankfurt Germany to meet the stringent regulations and challenging requirements of the more matured European markets.