CEAT Advances Its Off-Highway Mobility Goals with CAMSO Acquisition

CEAT's Bold Move in Off-Highway Mobility

In a transformative step for the off-highway tyre market, CEAT Limited has fortified its growth strategy by acquiring the CAMSO compact construction equipment business from Michelin Group. This acquisition, which encompasses the Midigama and Kotugoda plants in Sri Lanka, marks CEAT's substantial commitment to enhancing its market leadership in the Off-Highway Tyres (OHT) sector.

Major Milestone for CEAT

The deal not only establishes CEAT as a global owner of the CAMSO brand but also transitions ownership of the brand permanently across various categories after an initial three-year licensing phase. This acquisition signifies a strategic move for CEAT, aiming to broaden its horizons and secure a dominant position within the high-margin OHT segment.

For more than a decade, CEAT has meticulously developed its agricultural expertise, and now, with the addition of CAMSO’s prowess in producing compact construction equipment tracks and tyres, as well as its established footprint in Europe and North America, CEAT is now poised to engage with over 40 global OEMs and premium OHT distributors. This collaboration is expected to significantly accelerate its ambitions of becoming a global leader in off-highway mobility.

The Future is Bright for Sri Lanka

Furthermore, CEAT has announced an investment of $171 million in Sri Lanka over the next three years, which will not only elevate its operational capacity but also secure approximately 1,483 jobs within the region. The Indian High Commissioner to Sri Lanka, H.E. Santosh Jha, expressed his optimism regarding this investment, noting the ongoing trend of India being the largest source of Foreign Direct Investment (FDI) in Sri Lanka.

Jha emphasized that this partnership aligns well with both nations’ aspirations for mutual economic growth and reinforces their shared vision for prosperity. He remarked, "With India's private sector investing in Sri Lanka, I'm confident that our economic relations will continue to flourish."

Arnab Banerjee, the Managing Director and CEO of CEAT Limited, conveyed the significance of this integration, stating, "The acquisition of the CAMSO brand is a pivotal step in our long-term strategy aimed at being a major player in the off-highway mobility sector." He expressed confidence in the combined strengths of both parties, which are anticipated to foster new geographical expansions, enhanced product portfolios, and sustainable growth trajectories.

Ambitious Goals Ahead

Amit Tolani, Head of CEAT Specialty, also asserted that the incorporation of CAMSO’s premium brand and its manufacturing capabilities will markedly transform their operational landscape. "Our immediate focus remains on ensuring a seamless transition while enhancing customer satisfaction and further solidifying our operations within Sri Lanka.", said Tolani. This strategic acquisition positions CEAT on a path to achieving its vision of becoming a globally trusted name in off-highway tyres and tracks.

With a robust commitment to innovation and sustainability, CEAT’s future looks promising as it embarks on this transformative journey within off-highway mobility, bolstering both its domestic and international presence in this niche market.

The integration of CAMSO’s assets is more than just a business transaction; it's a forward-thinking approach that aims to revolutionize the off-highway tyre landscape while creating substantial economic benefits for the region. With CEAT's eyes set on the horizon, the company is well-equipped to embrace this new chapter in its growth story.