Ceat Shows Interest in China

Ceat, India’s fourth largest tyre manufacturer, has its eye on acquiring or entering into a partnership with a tyremaker in China. Such a move would benefit Ceat considerably, and the company believes that the additional capacity this would bring, along with removing bottlenecks in supply and improving the company’s product mix, enable Ceat to place a greater focus upon exports and increase both volume of production and profit margins.

Arnab Banerjee, the company’s vice-president of sales and marketing said “China provides a big opportunity. We may look at options for a possible partnership or even an acquisition.” A presence in China would provide Ceat with a foothold in a market undergoing even more dynamic changes than India. China is currently the world’s largest producer of tyres, with more than 4.5 million tonnes of rubber utilised last year.