COMPANY BRIEF

& CORE VALUES

Cavi Elettrici e Affini Torino, commonly known by the
abbreviation CEAT, is the flagship company of RPG (The
Rama Prasad Goenka) Group. It was established in 1924 in
Turin, Italy. As of date, CEAT is one of India’s leading tyre
manufacturers and has presence in global markets. CEAT
produces over 165 million tyres a year and manufactures
tyres for passenger cars, two-wheelers, trucks and buses,
light commercial vehicles, earth-movers, forklifts, tractors,
trailers, and auto-rickshaws.The current capacity of CEAT
tyres' plants is over 800 tonnes per day.

The oldest company of the RPG group.

The second largest tyre manufacturer in the country.
Annual turnover of Rs. 1,952 crore.
Products are renowned for their superior quality and
durability and are recognised as being 'born tough'.
The company is presently focusing on catering to the
fast growing passenger car and two wheeler
industry.

CEAT strives to create a work culture which stimulates

employees' professional growth . The Employee-Management
relationship is built on pillars like trust, respect and integrity.
Such an environment is conducive to bringing out the best of
their creative and analytical abilities through hands-on-deck
experience.
Quality Based Management (QBM)

QBM is followed at CEAT as a way of management for the

entire organization. It consists of philosophy, systems, tools
and technique from Total Quality Management (TQM), Total
Productive Maintenance (TPM) and Toyota Production
System (TPS).
The primary objective is to align people on 3 major focus
areas -
Promote quality thinking in the organization
Develop organization culture and values based on TQM
principles
Becoming customer centric in setting up of objectives and
targets

CEAT Awarded Deeming Prize

 Values - CAIRO

Challenger

Innovative and Agile, Questioning existing ways,

Promoting Experimentation
I am a Challenger when…
I strive towards breakthrough innovation
I prototype new methods and develop on innovation
funnel
I question existing ways of working
I am open to critique

Aspiration Led

Purpose-led, Passion for superior performance, walking the

extra mile
I am Aspiration Led when…
I dare to dream
I deliver an outstanding experience to my customers
I walk the extra mile in pursuit of our purpose and vision
Integrity

Being Authentic, Transparent and keeping Commitments

I demonstrate integrity when…
I take responsibility for my actions and ensure I do what I
say and say what I do
I am transparent with my stakeholders
I honor my commitments
I am responsible with company information

Result Obsession

Passion, High Energy, Speed and Collaboration

I demonstrate result obsession when…
I bring passion, high energy and systematic planning
towards every goal that I pursue
I take timely decisions and base them on facts and data
I put interest of the organization ahead of my own and
collaborate to make it happen
I take accountability of results directly and also drive
accountability with my co-workers

Openness

Approachable, Open and Boundaryless

I am open when...
I am approachable and involve larger team and their views
I value the skills, strengths and views of others
I operate directly across functions rather than through
hierarchy
I have a passion for learning, sharing ideas and help others
develop
 UNIQUE SELLING
POINT

Products are known for durability and

superior quality

PRODUCTS
Motor Cycle and scooter tyres
Auto Rickshaw Tyres
(Tube type and tubeless)

Heavy duty trucks and buses

Light Commercial Vehicles - Earth Movers and
Forklifts, Tractors, trailers and cars

Inner Tubes & Tyre Flaps

SEGMENTATION
Commercial Segment: Trucks, Buses, LCV
Passenger Car Segment : Cars, MUVs, Jeep
Speciality Segment : Earthmovers and Forklifts
Farm Segment : Tractors and Trailers.
 BRAND POSITIONING

Largest Tyre Exporter

Focused on Quality and Reliability
Have a presence across all segments
Adhere highest standards of safety
ISO/TS 16949:2002 certification by TUV
Consistent Delivery
Excellent product and services at competitive
price

Target Market
2-wheelers, passenger car, luxury cars, heavy
vehicles

Concentrated/Niche marketing due to capital

intensive nature and low operating margins.
All segments are targeted.
 TYRES

CEAT accelerates movement with

the finest tyres known for their
durability, smooth ride and secure
grip on roads.
Utilising cutting-edge technology and
practices to produce best in class tyres with
an emphasis on safety and superior grip.

CEAT manufactures the largest range of high-

performance tyres that deliver safety,
versatility and reliability. Today, CEAT tyres
are best known for their tough, smooth and
secure grip due to which they are favoured by
most automakers. Created by careful
research and testing, CEAT tyres are designed
for high speeds, tough terrains, severe
weather conditions and adverse roadways.
Using advanced technologies of tyre design,
engineering and material development, CEAT
combines grip and control without
compromising on the tyre’s life.
CEAT produces a wide range of tyres for
bikes, passenger cars, trucks, buses,
agricultural vehicles as well as giant off-
roaders. The company continues to achieve
success world over with its exports reaching
over 130 countries.
 Our Esteemed
Customers

CEAT enjoys long -standing business tie-ups with major

OEMs :

Tata Motors
Mahindra & Mahindra
L&T
Swaraj Mazda
Bajaj Tempo
Hero Honda
Ashok Leyland
Maruti
Eicher
Catterpillar
Piaggio
TVS Motors

Competitors
MRF
Michellin
J K Tyres
Apollo
Goodyear
Bridgestone
Birla
Dunlop
Yokohama
 S.W.O.T ANALYSIS
Strengths
Strengths are defined as what each business does best
in its gamut of operations which can give it an upper
hand over its competitors.
The following are the strengths of Ceat:

Wide product portfolio: The CEAT brand is popular

for its motorcycle tires which are sold under the
labels CEAT Zoom, CEAT Zoom Tubeless, F67, F85,
Milaze, Secura Sport and Secura Zoom, etc. The
company also manufactured tires for scooters under
the labels Gripp and Zoom D and passenger car tires
under the names Czar AT, Czar HT, Rhino and Rhino
TQ. Their range of tires for commercial vehicles are
Buland and Buland Mile XL RIB while for three
wheelers it is Anmol SL and Buland Mile XL. In
addition to this, it also manufactures tires for farm
and agriculture vehicle and specialty tires for mining,
quarrying, rock excavation, construction and port
applications.
High brand visibility: Ceat Tyres is a popular brand in
India and has high brand recall and recognition. The
company has been consistent in its advertisements
and has been always communicating the same value
proposition of being value driven as well as technical
savvy.
FMCG model distribution channel: Quite unlike other
tyre manufacturers the company has modeled its
distribution channel on FMCG companies. Instead of
selling tyres to the customer directly they have added an
intermediate layer of dealers who sell it to sub-
dealers.This has helped them to widen their reach
considerably.

Advertisements: The company has been undertaking a

lot of promotions lately and some of the latest
campaigns like the Nimbu Mirchi one has been able to
grab the customer attention significantly.

Weaknesses
Weaknesses are used to refer to areas where the
business or the brand needs improvement.
Some of the key weaknesses of Ceat are:

No market leadership: Though Ceat has the presence

in multiple categories like two equipment and
specialty tires it is not a market leader in any of these
categories though it has strong brand presence.

Low margins: The key focus area of Ceat is on truck

radial tyres and in this domain, the competition is
high because of which sales volumes are low and the
margins are high.
 Focus on too many segments at a time: The company
focuses on too many segments at a time and this has
resulted in diluting its presence in all segments and
they were rendered incapable of beating the
competition and this was thinning down the already
scarce resources.

Low focus on after sales service: Though Ceat Tyres

has a lot of customer service outlets the quality of
service is poor. There are a lot of complaints about
the behavior of the personnel in the service outlets as
well.
Opportunities
Opportunities refer to those avenues in the environment
that surrounds the business on which it can capitalize to
increase its returns.
Some of the opportunities include:

High growth potential: The country has around 60

manufacturers of tyres both big and small, some of
whom are regional players. The growth rate of the
tires market is around 9 % per year between 2015
and 2021. The highest growth is predicted for the
two-wheeler tires.

Changing Customer Needs: The customer needs are

changing continuously and currently the demand is
for driving safety and comfort. This is creating a huge
market for tires which have high grip.
Growing market for passenger cars: The market for
passenger cars is growing in India and many
multinationals are setting shop in India. This will
result in the increase in demand for OEM’s.

Threats

Threats are those factors in the environment which

can be detrimental to the growth of the business.
Some of the threats include:

Competition: The company faces stiff competition

from brands like JK Tyres, Apollo Tyres, Dunlop,
Bridgestone, Michelin, Good year and Cooper Tires
in India.
High cost of material: Materials used in tires like
synthetic rubber, carbon black, steel reinforcement,
chemicals etc are highly fluctuating and this will
invariably affect the final pricing of the products.
 MARKETING STRTEGIES

CEAT has always promoted its products through

successful ad campaigns and promotions. It has been
closely associated with cricketers such as Shikar
Dhawan, Suresh Raina, Rohit Sharma, Ajinkya Rahane
and, recently, Mayank Agarwal. Between 2015-18, the
brand was the sponsor for the strategic-timeout for the
Indian Premier League.
Its innovative three in one ‘barricade-stretcher-changing
room’ safety banner for the Kumbh Mela won
appreciation from everyone. This multipurpose safety
device transformed into a stretcher, barricade or
changing room, depending on the need. Its popular
campaigns for utility vehicle and motorcycle tyres — like
the ‘nimbu mirchi’ and ‘idiot-safe’ ads — won many
awards for best campaign. CEAT also won customer
approval by combining promotion with safety awareness
as it launched the nation-wide campaign, ‘Drive Safe
Dad’.

CEAT is reportedly the first Indian tyre company to start

a mobile app that provides information about tyre care,
safe driving suggestions and geo-location services to
track down CEAT dealers, petrol pumps and ATMs. It
includes a ‘CEAT Cricket Rating Segment’ for lovers of the
game!
The company’s activities on the CSR front are numerous.
These are generally focussed in and around CEAT
manufacturing facilities and are slotted under specific
categories.
The women empowerment programme, ‘Swayam’,
promotes gender diversity at the workplace, training
women as drivers, delivery personnel and fork lift
operators. ‘Roadsmarrt’ is an initiative launched at
schools across Mumbai to educate children — future
vehicle users — about road safety. ‘Jeevan’ is an
integrated, holistic community development project
creating sustainable assets through provision of clean
drinking water, sanitation, health and nutrition.
CEAT imparts functional English knowledge to children
from marginalised backgrounds in more than 30
government schools across Maharashtra, Gujarat and
Rajasthan through its project ‘Pehlay Akshar’.
It is a very good employer, offering workers flexible
working hours and actively involving their families in
welfare schemes. It is no wonder that it has won the
National Excellence Award for employee relations from
the Employers Federation of India.