Ceat, the country’s fourth biggest tyre producer, is charting expansion plans for the international market, with launches planned in various countries, including the US, the world’s biggest tyre market. The company aims to have an extended presence in European and Latin American countries once its new Rs630-crore radial tyre factory at Halol, Gujarat (30 km from Vadodara) comes on stream in the last quarter of this year. The company is also exploring the possibility of outsourcing manufacturing, which could be in China, Vietnam or Thailand, as they bring in better technology and lower investment. About 25-30 per cent of the company’s production is outsourced in the country. The Halol plant is geared to produce 300,000 passenger car radials and 40,000 truck and bus radials every month.
The company has acquired the Ceat brand from Pirelli & Co SpA for 9 million Euros (Rs55 crore), the valuation of which was done by KPMG. This transaction allows Ceat to have control in markets where Pirelli owned the Ceat trademark, mostly European countries. The acquisition is strategically important, as it is the main brand of the company and it allows to market it in whichever market it chooses. Pirelli will continue to hold exclusive licences to use the Ceat brand in Europe, Latin America, Turkey and Mexico till December 31, 2011. The deal also includes a non-exclusive license to Pirelli to market and sell the Ceat brand till December 31, 2012. Ceat is currently the owner of the company brand name in nine countries — India, Sri Lanka, Bangladesh, Myanmar, Pakistan, Bhutan, Nepal, Afghanistan and Vietnam. This acquisition will allow the company to export radial and cross-ply tyres to the world.
Ceat presently exports to Europe and South America under the ‘Altura’ brand name. It will retain the name, as it has developed a strong customer base. About half its exports are done under the Altura brand, created about 10 years earlier, while the balance is carried out under the Ceat brand.
| Company Name | CMP |
|---|---|
| MRF | 128130.00 |
| Apollo Tyres | 474.15 |
| CEAT | 2295.15 |
| Balkrishna Inds. | 2500.00 |
| JK Tyres & Inds. | 384.90 |
| View more.. | |
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
Buy quality Stocks when they are available at reasonable prices and supported by an upward price trend and Sell when they are Overvalued using the Decizen Rating System. Covers 3500+ stocks
Download APP
