07 Dec 2024
December 7, 2024
Ceat, one of the major tyre manufacturers in India is all set to acquire Michelin’s off-highway tyre brand, Camso, for USD 225 million (about INR 1,900 crore). As a part of the deal, Ceat will also acquire two Michelin-owned manufacturing plants in Sri Lanka. Camso is a Canada-based company focused on manufacturing tires for tractors, bulldozers, and harvesters-thus yielding better profit margins than passenger car tires. Michelin took Camso under its ambit in 2018 for nearly USD 1.5 billion.
According to Arnab Banerjee, MD & CEO of Ceat-This acquisition of the Camso brand is perfectly aligned to the future growth plans of Ceat in the off-highway tyre business and would increase the profitability for the company. Ceat has been expanding its off-highway tyre business over the past decade, offering more than 900 products, especially in agriculture, and covering around 84% of the sector’s needs. As an advantage, Ceat will be able to expand into tracks and construction tyres as well.
The acquisition also gives Ceat access to Camso’s global customer base, including over 40 international original equipment manufacturers and premium distributors. The two companies have complementary strengths, and Ceat believes it can help Camso grow in areas like agricultural tyres.
Ceat is one of the leading manufacturers of tyres in India, producing tyres for different automobiles, such as cars, trucks, buses, and two-wheelers among others. The company also exports to over 110 countries. At the same time, Camso is a well-known name in the off-highway tyres and its merger with Ceat helps them to expand to new markets. Post-the announcement, Ceat’s shares also witnessed a slight uptick of 0.2%, closing at INR 3,092 on the Bombay Stock Exchange.
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