Ceat may hike prices soon
Date: 02-06-2011Ceat Ltd, part of the Rs 17,000-crore RPG Group, may roll out another round of price hike of 2-3% this month, as high rubber prices continue to put the squeeze margins. It had raised tyre prices by an average of 3-4 per cent across different categories last month, as had most of the other major players. Prices of rubber, which spiralled by 70 per cent last fiscal, are peaking at Rs 240/kg, are ruling at about Rs 220/kg.
The company is also ramping up production at its Halol plant in Gujarat, to gain optimum mileage during the summer when demand for tyres usually peaks due to increased wear and tear.Ceat is among the five major players that account for 80 per cent of the estimated Rs 30,000-crore domestic tyre market, which grew about 25 per cent.crackcrack