Ceat eyes 15% in motorcycle, car tyres sector
By Ceat has a 10-per cent s | 19 Sep 2002
Mumbai: Ceat is aiming at a 15-per cent market share in motorcycle- and car-tyre segments in the next 12 months. The company hopes to see its market share double in the fast-growing two-wheeler segment, and hopes to sell over 1.3-lakh scooter and motorcycle tyres every month.
The first quarter of 2002-02 saw Ceat clock a total turnover of Rs 358 crore. During the first half of 2002-03, the company expects the turnover to touch Rs 740 crore. Ceat is planning to increase its profit to Rs 50 crore in the current year.
Ceat vice-chairman Harsh Goenka says his company is aiming at doubling its market share in the rapidly growing market for two-wheelers over the next 12 months. “Ceat will be outsourcing tyres from two factories in Vadodara and Hyderabad. The factories have a capacity of 1.5-lakh tonnes each. While production at the Vadodara factory is already in full swing, the Hyderabad plant is expected to commence production in a few months.“
He assures that the company will be restructuring its balance sheet during the course of the year to reduce the burden on its finances. “Our target is to bring down the loans by Rs 50 crore.“ Ceat has given loans and advances to several of its subsidiaries that has put an additional burden in the finances of the company.
Ceat has a 10-per cent share in the car radial tyre segment and sales in 2001-02 grew by 35 per cent. In the truck segment, the company is aiming at a 19-per cent share against the last year's 17 per cent. Sales in this segment grew by 48 per cent in 2001-02 against an industry average of 10 per cent.