The firm, which generates twenty percent of its entire income from exports, has made preparations to join the market in the United States in the latter half of this year.
According to Chief Financial Officer Kumar Subbiah, CEAT Ltd. is planning to capitalise on the opportunity based on its “value brand” positioning despite the slowdown in many economies because the world is looking for an alternative to China as a source for tyres and CEAT Ltd. has been positioning itself as a “value brand.” After breaking into the European market for truck and bus radial tyres the previous year, the company, which generates twenty percent of its total revenue from exports, intends to enter the market in the United States in the latter part of the current year. This will be the company’s second market break into an international market.
“We suffered some type of pounding, mostly on account of present situations in Europe and some other nations finding it difficult to acquire money to buy tyres,” Subbiah told PTI regarding the reasons for the company’s lacklustre performance in terms of exports during the current fiscal year. On the other hand, he stated: “When it comes to exports, we anticipate that it will go back on the growth path in the following year, provided that the global macroeconomic conditions are able to support that sort of expansion. We have positioned ourselves to take full advantage of any opportunities that may arise.”
“The world is looking for a good production source for tyres as an alternative to China and the Indian tyre industry, and in particular CEAT is in a good position to take advantage of that going into the next year,” said the CEO of CEAT. “The world is looking for a good manufacturing source for tyres as an alternative to China and the Indian tyre industry.”
When asked if the downturn in Europe and other global markets may hinder export growth, Subbiah responded: “Our feeling is that during a recessionary period, generally speaking, corporations or purchasers of tyres, or buyers of any items would opt for a value brand.” Since Ceat is known as a value brand on the global market, he believes it has the potential to assist the firm “in terms of taking benefit of that sort of behaviour during the recessionary era.”
“In the course of the previous year, we made our debut on the European market for radial truck and bus tyres. In addition, towards the latter half of this year, we want to launch our business in the United States market. Therefore, these things ought to be of assistance, “he continued. However, according to Subbiah, while there is clarity about the demand pattern in the local market, there is no clarity about the demand pattern in the international market owing to global events such as the war between Russia and Ukraine and its influence, particularly on energy costs in Europe.
“We look forward to exporting more in the coming year since it is a little more profitable and slightly less competitive compared to the domestic market,” he added. “However, it is not fully in our hands in terms of how that foreign market would shape up.”
When questioned if the firm intends for exports to generate more than 20% of overall revenue, he said that Ceat does not have any specific objective but that exports will play a role in the overall growth of the company.
“The percentage of revenue that we keep for ourselves has increased from 12-13% to 20%. Therefore, from this point on, we might not be able to detect a jump of that magnitude. However, we are spending on capabilities that are intended for export, and as a result, we anticipate that the share will increase even if we do not have a specific objective in mind “In addition, he said.
About CEAT Tyres:
CEAT Tyres is an Indian multinational company that produces a wide range of tyres for various vehicles. The company was established in 1958 and is headquartered in Mumbai, India. CEAT Tyres has a strong presence in India and has expanded its operations to other countries such as Sri Lanka, Nepal, Bangladesh, and the Middle East. The company offers tires for bikes, cars, trucks, buses, and agricultural vehicles. CEAT Tyres is known for its innovative products, excellent customer service, and focus on sustainability. The company’s tyre production units are equipped with state-of-the-art technology, ensuring high-quality products. CEAT Tyres has a wide network of dealers and distributors, making it easy for customers to purchase its products across India and other countries.
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