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Old 19th December 2016, 13:51   #1
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Default Ceat to invest 2,800 crore; boost capacity by 2.4 crore tyres

Ceat Ltd. has announced its plans to invest Rs. 2,800 crore in India in order to boost its annual manufacturing capacity. The said investment will be made over a span of 5 years. Through this investment, Ceat is aiming to increase its annual production capacity by 10 lakh units for truck bus radials, 1.7 crore units for two-wheeler tyres and 60 lakh units for passenger car radials.

The company is aiming to complete the aforementioned increase in capacity by FY 2022. The 2,800 crore worth of investments will be made through a mixture of debt and equity.

The company also announced the appointment of Mr. Kumar Subbiah as the new Chief Financial Officer. He will be taking charge from January 16th, 2017, and will be replacing Mr. Manoj Jaiswal, who is moving on to another role in the company.

Ceat currently has a production capacity of 1.5 crore tyres in the country. It caters to a wide range of segments, including heavy-duty trucks and buses, light commercial vehicles, earthmovers, forklifts, tractors, trailers, passenger cars and two-wheelers.

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Old 20th December 2016, 10:53   #2
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Default Re: Ceat to invest 2,800 crore; boost capacity by 2.4 crore tyres

Does anyone have market-share figures? I'm guessing Ceat is a distant 5th to MRF, JK, Apollo & Bridgestone. I rarely ever see them as OEM fitment on any new car, and no one really thinks of 'Ceat' when it's time for replacement.
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Old 20th December 2016, 11:52   #3
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Default Re: Ceat to invest 2,800 crore; boost capacity by 2.4 crore tyres

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Originally Posted by GTO View Post
I rarely ever see them as OEM fitment on any new car.
Yes, it's rare to see as OEM fitment on new cars except my Renault Kwid
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Old 23rd December 2016, 18:24   #4
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Default Re: Ceat to invest 2,800 crore; boost capacity by 2.4 crore tyres

Ceat as a company shot itself in it's foot in the 2000s when it sold it's radial production facility to Goodyear. It was a shocking move that left it's dealer's gasping for answers (We were one of them).

In the past 2-3 years, they have been struggling to make a comeback.

They have been very serious about the truck radial market which is currently dominated by JK and Apollo and to a smaller extent Bridgestone and Michelin too. The truck radial market is too big for such a small number of players and Ceat senses a serious opportunity because they at least have a brand name unlike the several Chinese companies coming in.

In the passenger car market, they are focusing on the low-priced segment. Cheap tyres that will be hard and run long. No focus on quality, ride comfort, etc... Nothing to mock them because this segment is still extremely large and currently dominated by MRF, JK, Apollo. Ceat senses an opportunity and is going for it.

In the two-wheeler segment, they are doing reasonably well.

Their main problem will be to find dealers ready to sell CEAT to their customers. In the cities and urban areas, it will be a very very difficult proposition. No dealer wants to put in the effort to build up Ceat as a brand again after knowing how the company ditched their stakeholders a decade or so ago.

In the rural market, where things arent so developed, they will find it easier going.

Overall, 2800 crores is frankly not a lot of money over 6 years. This is the maximum investment for this project. If the numbers dont support it, I see them scaling down or they will offer to manufacture tyres on contract for someone else!
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Old 29th March 2017, 15:02   #5
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Default Re: Ceat to invest 2,800 crore; boost capacity by 2.4 crore tyres

CEAT Ranks Highest in India for OE Tire Customer Satisfaction. Very proud moment for me working with CEAT for 8 years (1996-2003) in their biggest plant, Bhandup (Mumbai).

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The study, now in its 17th year, measures satisfaction among original equipment tire owners during the first 12 to 24 months of ownership across four factors (listed in order of importance): appearance; ride; durability; and traction/handling.

Ceat ranks highest in overall customer satisfaction (893) and performs well in the appearance factor. MRF ranks second (878).

The 2017 India Original Equipment Tire Customer Satisfaction Index (TCSI) Study is based on 3,346 responses from new-vehicle owners who purchased their vehicle between May 2014 and August 2015. The study was fielded between May and August 2016.
http://www.jdpower.com/press-release...dex-tcsi-study
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Old 29th March 2017, 15:59   #6
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Default Re: Ceat to invest 2,800 crore; boost capacity by 2.4 crore tyres

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Originally Posted by GTO View Post
Does anyone have market-share figures?
The Market share of Tyre companies in FY15 (based on sales).
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