A significant strategic move is set to reshape the industrial tire landscape, marking a transformative moment for an ambitious automotive component manufacturer.
The company made a substantial $225 million investment, encompassing two key manufacturing facilities and comprehensive global brand ownership. This strategic purchase is to expand its technological and production capabilities in specialised off-highway tire and track segments.
Share Price Movement
The share price of CEAT Limited went up by 11.95 percent to Rs. 3,465 per share on Monday, an increase from its previous close of Rs. 3,095.7 per share. The market capitalisation now stands at approximately Rs. 13,975 crore as of December 09, 2024.
What happened
CEAT has signed a $225 million deal to acquire the Camso brand’s off-highway construction equipment bias tyre and track business from Michelin. The acquisition includes two Sri Lankan manufacturing facilities, global ownership of the Camso brand post a three-year licensing period, and access to a $213 million revenue base (CY23). This strategic move broadens CEAT’s product portfolio and global customer reach in the off-highway tyre segment.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, CEAT’s consolidated revenue from operations has increased by 8.25 percent YOY from Rs. 3,053 crore in Q2 FY24 to Rs. 3,305 crore in Q2 FY25 and increased by 3.05 percent QoQ from Rs. 3,193 crore in Q4 FY24.
The company’s consolidated net profit has declined by 41.8 percent, from Rs. 208 crore in Q2 FY24 to Rs. 121 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has reduced by 21.4 percent QoQ from Rs. 154 crore.
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Market Outlook
The Indian automobile industry is a vital driver of manufacturing and employment, adapting to changing consumer trends like SUVs and electric vehicles. In FY24, medium & heavy commercial vehicles thrived due to infrastructure growth, while passenger vehicles saw increased SUV demand. Two- and three-wheelers rebounded with new models and positive sentiment, though tractors faced declining production.
Electrification efforts are advancing, targeting 80% two-wheeler EV adoption by 2030, with Uttar Pradesh and Maharashtra leading EV penetration. The 2024 Union Budget supports EV infrastructure, public electric buses, and advanced vehicle technologies, fostering a greener future.
Shareholding Pattern
As of the December 2024 shareholding pattern, CEAT Limited is primarily held by the promoters at 47.21 percent, foreign institutional investors hold 16.65 percent, and the public with 16.39 percent.
About Company
CEAT Limited is a prominent Indian multinational tyre manufacturing company, established in 1924 in Turin, Italy. It transitioned to India in 1958 as CEAT Tyres of India Ltd, in collaboration with Tata Group. Acquired by the RPG Group in 1982, it was renamed CEAT Ltd in 1990. Today, CEAT operates as a flagship entity of the RPG Group and manufactures a wide range of tyres, serving multiple vehicle segments.
Headquartered in Mumbai, Maharashtra, India, CEAT operates several manufacturing plants across the country, including in Mumbai, Nashik, and Chennai. The company produces over 165 million tyres annually, with a manufacturing capacity exceeding 800 tonnes per day. CEAT’s global presence spans over 110 countries, including the US, Europe, and Asia, with joint ventures in Sri Lanka and regional offices in Brazil, Germany, and Indonesia.
Recently, CEAT has focused on expanding production capabilities and launching innovative products, such as Bias Belted Tyre technology and digital initiatives for employee training. The company is recognised for its commitment to quality, holding the ISO certification and winning prestigious awards like the Deming Grand Prize.
Written By Fazal Ul Vahab C H
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