CEAT to double its business in Europe in next 2-3 years
CEAT Limited plans to expand its business in Europe in the next two-three years, benefitting from anti-dumping duties levied on Chinese tyres worldwide. Further, the company plans to participate in the growing North American market. Managing Director of CEA, Anand Goenka, told the media that the company's international demand is robust and has a robust overseas opportunity.The company can further double its sales in the European market over the next 2-3 years.There is an anti-dumping duty on Chinese tyres in America and Europe. He added that the company expects the international business to expand at a compounded annual rate of 20% in the coming years. It will also come as a respite for the company when high input costs had pressure on marginal costs and impacted the domestic demand.The company has witnessed a Rs 20 crore loss in the rubber and crude oil prices in the October-December quarter to high input costs. The company acquires a fifth of its revenue from the international market, with a quarter of that coming from the European market. Goenka said that CEAT plans to generate incremental sales from the continent. It also plans to enter markets like Germany and France and launch new varieties of tyres in the existing markets. Additionally, the company is developing a variety of tyres for the US, which is expected to be complete in 12-18 months. There is a robust demand for off-highway tyres from the existing markets. Currently, there is a shortage of off-highway tyres in the market.The company's capacities are being fully utilised, and the company will be increasing its manufacturing capacity in the off-highway sector. Image Source
Also read: CEAT records net loss of Rs 20 cr in December end quarter
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