Latest news with #CEAT
Mint
4 days ago
- Automotive
- Mint
Trump tariff threat: CEAT figures out ways to salvage its $225mn Camso acquisition
NEW DELHI : Tyre maker CEAT Ltd will shift production for the US market to its Indian facilities from Sri Lanka to salvage its biggest acquisition, Canadian tyre brand Camso, in case US President Donald Trump decides to go ahead with his plan to impose higher reciprocal tariffs. 'We are in talks with the Sri Lankan government. There is hope that the situation will be resolved. However, we have our mitigation strategies in place in case trade deals do not materialise," Arnab Banerjee, managing director and chief executive, CEAT, told Mint. India's fourth-largest tyre player acquired Camso, which gets nearly one-third of its business from the US, in December 2024 for $225 million (about ₹1,900 crore) in an all-cash deal from France-based Michelin group. In 2023, Camso posted a revenue of $213 million. Also Read: In US-China trade war, Indian tyre makers could be collateral damage The acquisition gave the RPG Group flagship control over its two manufacturing facilities in Sri Lanka and over 40 global OEMs, including those in the US. However, Trump's 2 April announcement to impose 44% reciprocal tariffs on Sri Lanka soured the deal for the Mumbai-based company. Though the US administration has paused the implementation of higher tariffs till 9 July, the impending threat has pushed the company back to the drawing board. 'At present, we do not have much exposure to the US. However, the country is an identified growth market for us," Banerjee added. The threat Analysts have warned that the Camso acquisition will become a problem for the company if the Trump administration pursues the plan, and it will be key to watch CEAT's mitigation strategies. The proposed tariffs will increase import costs for US tyre customers, which can shift demand to manufacturers with plants in the North American region or those in countries that strike trade deals with the US. 'If the tariff situation prevails, there can be significant risk to 15% of the overall volumes (US bias tires) for the company (Camso)," wrote Rishi Vora of Kotak Institutional Equities, in a 1 May note. 'In that case, the rationale for the transaction becomes difficult to justify." Also Read: Rubber barons: These small caps make a fortune from discarded tyres. Should you invest? In 2024-2025, the tyre maker's net profit declined by 26% to ₹471 crore, while its revenue grew by 10% to ₹13,217 crore. Its share price has risen by 17.88% since the beginning of 2025, as against a 2% rise in the Nifty Auto. The contingency plan The North American market is a key destination for the Indian tyre industry, accounting for about one-fifth of its nearly $3 billion exports in 2023-24. Europe and Latin America are also key destinations. In 2024-25, CEAT got about 19% of its ₹13,217 crore revenue from exports, with its major markets in Latin America and Europe. However, the management set its sights on the world's largest tyre market in 2024. 'CEAT has entered twelve new geographies in the fiscal year with plans to enter the world's largest tyre market, the US, in 2025. This expansion underscores our capability to produce the best-in-class products to meet global requirements," the company's vice chairman, Anant Goenka, said in his letter to shareholders in 2024. Now, to salvage that ambition, one of its mitigation strategies involves the company shifting the production of tyres for the US market from Camso's plants in Sri Lanka to its Indian facilities, while the Sri Lankan plants will produce tyres for the European market. As of now, India, where CEAT has six manufacturing plants with a capacity of producing more than 140,000 tyres every day, stands to attract reciprocal tariffs of 26% on the goods it exports to the US. Tyre exports Overall, the international markets constitute a large share of India's top tyre makers. While Apollo Tyres Ltd earned around 13% of its revenue from exports in 2023-24, international sales accounted for nearly three-fourths of Balkrishna Industries Ltd's top line. India's largest tyre player, MRF Ltd, earned about 8% of its revenue from exports. For the broader auto ancillary sector, including auto parts makers, exports to the US contributed one-third of the total $21 billion exports in 2023-24. Also Read: Can Camso transform tyre maker Ceat into a high-margin business? Sona Comstar, which gets more than 40% of its revenue from the North American market, highlighted in its earnings call on 30 April that 3% of its revenue can be impacted due to Trump tariffs.
Reuters
4 days ago
- Automotive
- Reuters
Tyremaker Goodyear India posts quarterly profit on higher replacement demand
May 27 (Reuters) - Tyremaker Goodyear India ( opens new tab reported a profit in the fourth quarter on Tuesday, as higher replacement demand for tyres offset the impact of higher rubber prices. U.S.-based Goodyear Tire's (GT.O), opens new tab Indian unit posted a profit of 48.7 million rupees ($570,578) for the three months ended March 31 against a loss of 42.1 million rupees a year ago. Goodyear India supplies tyres to BMW ( opens new tab and Toyota (7203.T), opens new tab among others and depends on automakers' sales for a major chunk of its revenue. Total vehicle sales in India rose 1.8% year-over-year in the reported quarter but analysts said that demand for replacing old or worn out tyres sustained. Rival CEAT ( opens new tab missed its quarterly profit estimates last month, while MRF ( opens new tab beat estimates. Goodyear India's revenue from operations rose 9.5% to 6.03 billion rupees, compared to a 15.6% fall last year. Its total expenses grew 7.2%, led by a 28.7% rise in cost of materials consumed. The company had expected a pick up in replacement demand, which is cyclical in nature, in the fiscal year ending March. Its shares closed 1.6% higher before the results. ($1 = 85.3520 Indian rupees)
Mint
5 days ago
- Automotive
- Mint
CEAT, MRF among 4 tyre stocks that zoomed up to 22% following Q4 numbers. Do you own any?
Tyre stocks in focus: Shares of CEAT, JK Tyre & Industries, and MRF have surged following the release of their March quarter results. Strong financial performance, upbeat management commentary, and continued bullish sentiment from analysts have encouraged investors to increase their exposure to the tyre sector, driving stock prices up by over 20%. Ceat's share price has jumped from ₹ 3,060 to ₹ 3,728 over 16 trading sessions, resulting in a 22% gain following the release of its March quarter results on April 30. The strong performance also pushed the stock past the ₹ 4,000 mark for the first time, hitting a fresh all-time high of ₹ 4,044 apiece. Likewise, JK Tyre's share price rose over 9% after its March quarter results, while MRF gained 7% following its Q4 figures. Apollo Tyres also saw its share price increase by 5.5%. Despite tepid demand for new tyres during the reporting quarter, strong replacement demand from retail customers supported healthy volume growth for tyre manufacturers. In recent quarters, sluggish passenger vehicle sales have prompted tyre makers to increasingly rely on the replacement market to drive overall volumes. A key positive in the March quarter was the stability in raw material prices compared to Q3. However, some of that benefit was partially offset by the depreciation of the rupee against the US dollar. Tyre companies also implemented price hikes during the year, which helped cushion the impact of elevated input costs. Looking ahead to FY26, tyre companies have shared a positive outlook. CEAT expects continued double-digit growth, driven primarily by rising demand in the premium tyre segment. The company recently launched three new premium tyres — Run Flat Tyres, Z-rated 21-inch radials, and CALM tyres designed for EVs. CEAT currently holds a market share of 20–25% in the electric two-wheeler (E2W) and electric passenger vehicle (E-PV) segments and aims to maintain this share through new order wins. JK Tyre also noted that its premiumization strategy is yielding positive results. Its premium products — including Leuitas Ultra, Smart Tyre, Ranger Series, and Puncture Guard tyres in the passenger vehicle segment, along with the XF, XM, and XD series in the commercial segment —the company said are witnessing strong market traction. Analysts remain optimistic about the tyre sector's outlook, citing improving margin potential driven by a sharp decline in crude oil-based raw material costs and easing domestic rubber prices. Crude oil prices have fallen nearly 18% so far this year, which is expected to benefit oil-sensitive sectors like tyres. Following the strong March quarter performance, several domestic and global brokerage firms have reaffirmed their positive stance on leading tyre companies. Japanese brokerage firm Nomura upgraded CEAT stock to 'buy' from Neutral, raising its target price to ₹ 3,945 from ₹ 3,051. Emkay Global also maintained a 'buy' rating and increased CEAT's share price target to ₹ 4,100, while Motilal Oswal reiterated its 'buy' rating with a target of ₹ 3,818, noting CEAT's strategic focus on segments like passenger vehicles, two-wheelers, off-highway tyres, and exports, along with disciplined capex, is likely to support long-term margin and free cash flow improvement. Global brokerage CLSA raised its price target on MRF, one of India's most expensive stock, to ₹ 168,426 from ₹ 128,599, maintaining its 'outperform' rating. CLSA's new target is the highest on the Street, surpassing Anand Rathi's earlier peak of ₹ 160,000. CLSA added that MRF's superior product portfolio has enabled it to outperform peers and could help it generate free cash flow of ₹ 2,700 crore by FY27. In the case of Apollo Tyres, Motilal Oswal maintained its 'buy' rating with a target price of ₹ 554. ICICI Securities also reiterated its 'buy' call, raising the price target to ₹ 555 from ₹ 520. Nomura, meanwhile, adjusted Apollo Tyres' target price to ₹ 490 from ₹ 470 but retained a 'neutral' rating. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Hindustan Times
6 days ago
- Entertainment
- Hindustan Times
Billionaire's post on 'spirit of Mumbai' after heavy rain batters city, damages roads and disrupts local trains
As heavy rains inundated Mumbai and brought train services to a standstill on Monday, Indian billionaire with a net worth of $4 billion, Harsh Goenka took to the social media platform X to share a video, sarcastically captioning it 'spirit of Mumbai.' Also read: Kemps Corner road disintegrates after heavy rainfall in Mumbai, traffic disrupted The clip showed a blue off-road vehicle battling its way through a deeply rutted and muddy dirt road, seemingly overwhelmed by the harsh terrain. As the Chairman of RPG Enterprises, the parent company of tyre manufacturer CEAT, Goenka shared the video with a tongue-in-cheek caption: 'I hope you have the perfect tyres to go to work to uphold the 'spirit of Mumbai' #MumbaiRains.' However, the video isn't recent. It had originally been posted in 2024 by Anand Mahindra, Chairman of the Mahindra Group, who had reshared the clip from video creator Josh Koelbel. The footage features a modified Mahindra Jeep being skilfully driven across a challenging off-road trail. Mahindra's caption had read: 'You'll get to your destination… No matter how tough the road…' The phrase 'spirit of Mumbai' in the RPG Group chairman's recent caption echoes an earlier post that sparked backlash. In that widely circulated video, he had shared footage of women hurriedly scrambling to board an overcrowded Mumbai local train. Also read: Businessman worth $4 billion trolled for Mumbai local video. His cryptic clarification 'Daily life in Mumbai… what we call the 'spirit of Mumbai'!' he had captioned that post. Though many in Mumbai refer to their collective resilience as the 'spirit of Mumbai,' Goenka's romantic take, especially coming from a billionaire, did not sit well with many. 'It's survival... not spirit. Expecting even basic dignity in public transport is a struggle in this country,' one user had written. Another asked: 'Are you mocking them? Why don't you travel just a week like them! People like you who have means to make some meaningful change, yet indulge in 'poverty porn', are the real parasites of this society.' Goenka responded with a cryptic clarification to one critical comment of an X user named Samir Shah. 'No, Mr. Harsh. This is not Spirit of Mumbai, this is Majboori of Mumbaikar,' wrote Shah. Goenka replied, hinting that his post was meant to be sarcastic: 'Understand sarcasm,' he wrote.
Mint
22-05-2025
- Business
- Mint
Harsh Goenka calls Pakistan a ‘total mismatch' against India: ‘It's like Kohli vs gully cricketer'
RPG Enterprises chairperson Harsh Goenka has called out Pakistan again, comparing the economic might of the Adani Group with that of the country as a whole. In a post on X on Wednesday, Goenka said that just one Indian company is bigger than entire Pakistan. 'Just one Indian company. Bigger than an entire nation. And they dare to fight with us,' he said in the post. He further proved his point by drawing up comparisons of mismatched people, companies etc., like 'Virat Kohli vs a gully cricketer', 'CEAT vs a cycle tyre shop' and more. 'It's like: Kohli vs a gully cricketer, ISRO vs a kite, Shahrukh Khan vs a YouTube actor, Naatu Naatu vs a school dance, CEAT vs a cycle tyre shop,' he said. 'A TOTAL MISMATCH,' Goenka said, in all caps. The RPG Enterprises chairman also attached an image, where it showed that the 'market capitalisation' of the Adani Group is $161 billion, while that of Pakistan is $50 billion. The chart also showed that the Adani Group was far ahead of Pakistan in terms of renewable energy infrastructure, green hydrogen and port operations. Harsh Goenka's post found support among netizens, who agreed with his point of view. 'Sir, we have often seen dogs bark at people going in luxury cars but that doesn't mean the owner of that car shakes up to all this and starts comparing himself with that dog. My pov is loud and clear,' one person said. 'Last one is very personal,' another user joked. 'This comparison is a proper T20 thrashing. Love the CEAT shade too,' a third user agreed. In response to the Pahalgam attack, Indian Armed Forces launched Operation Sindoor in the early hours of May 7, targeting nine terror sites in Pakistan and Pakistan-occupied Jammu and Kashmir (PoJK), leading to the death of over 100 terrorists affiliated with terror outfits like the Jaish-e-Mohammed (JeM), Lashkar-e-Taiba (LeT) and Hizbul Mujahideen (HM). Following the attack, Pakistan retaliated with cross-border shelling across the Line of Control and Jammu and Kashmir as well as attempted drone attacks along the border regions. India responded by launching a coordinated attack and damaged radar infrastructure, communication centres and airfields across airbases in Pakistan. India and Pakistan came to an understanding on May 10 to stop the firings across the borders. New Delhi has maintained that Pakistan pleaded to stop the military actions after India hit eight military installations in Pakistan.
