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Introduction:
CEAT is an Indian tyre manufacturing company owned by RPG group. Established in
1924 at Turin, Italy, CEAT has come a long way since. The company journeyed to India in
1958, and later became part of the RPG Group. One of the top business conglomerates in
India, the RPG group has a turnover of 3 billion USD. Today, CEAT is one of India’s leading
tyre manufacturers, with a global footprint spanning over 120 countries.
CEAT produces best-in-class high performance tyres for a wide range of vehicles including
tyres for 2/3 Wheelers Passenger Vehicles and Utility Vehicles Commercial Vehicles and
Off-Highway Vehicles and produces over 37 Million tyres in a year. CEAT also
manufactures and markets superior quality tubes and aps. CEAT became the first tyre
company in the world, outside of Japan, to be conferred the prestigious Deming prize. One of
the oldest and most respected quality awards in the world, the Deming prize awards
companies that achieve business transformation through total quality management.

Product Analysis : CEAT TYRES

CEAT Specialty is CEAT’s division for off-highway (OTR) and agricultural tyres, with a
brand-new plant focussed on agricultural radials. CEAT Specialty tyres traverse a wide range
of segments from tyres for farming, mining, industrial and construction equipment, to
earthmovers, and special application off-road tyres.
Product is an engine of vehicle of the company for providing consumer satisfaction. The
product is most important conversion by which any firm can prove its efficiency intention of
quality product is a symbol of the business firm product is centre point around which all the
activity of the business.

 Here is the product line of CEAT Tyres

CEAT Zoom
CEAT Liittle master
CEAR Secura Sport
CEAT Milaze

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 CEAT Gripp
CEAT vertigo sport
Here are the Three products that explained in detail

CEAT ZOOM:
In CEAT Zoom there are three different types of tyres
 Zoom XL
 Zoom Plus
 Zoom D

CEAT Zoom bike tyre provides excellent control and stability at high speeds. The high-
performance bike tyre has an all-round steady ride control as it can hold on to the road
effortlessly. Its smart tread design features optimised grooves for superior road grip even at
high speeds. The tyre provides confident leaning and cornering to every ride due to its wider
tread arc radius. The tubeless bike tyre comes in one size and is compatible with vehicles like
Bajaj Pulsar 150 and Bajaj Discover.

The Zoom D CEAT scooter tyre lets you have free-spirited scooter rides with complete
control on the roads. Zoom through city roads as the tyre’s zig-zag centre groove allows for
smooth rides every time. The shoulder grooves allow sharper turns along with excellent ride
quality. This scooter tyre is available for most leading scooters in the country, from Honda
Activa to Yamaha Fascino.

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CEAT Zoom Plus is known for its phenomenal cruising abilities on long routes. The bike tyre
does an incredible job when it comes to riding on the highways, especially at high speeds. Its
design facilitates excellent cornering ability, thus maintaining the balance of your
motorcycle. The Zoom Plus is also suitable for offering a comfortable and secure ride to the
bikers. The Zoom Plus has a unique tread pattern design. While biking on long tours with
these tyres, you will enjoy an excellent grip on both wet and dry surfaces. The CEAT Zoom
Plus, with its fabulous cruising capabilities, is an excellent option for anyone looking to buy
tyres for premium and adventure bikes. Its exceptional performance on highways makes the
Zoom Plus one of the best Bullet bike tyres in India. It is available in both tube-type and
tubeless formats.

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CEAT Gripp:
The CEAT Gripp tyres is designed to long lasting gripp. In CEAT gripp there are
two types.
 CEAT Gripp XL
 CEAT Gripp X3
The CEAT Gripp XL bike tyre is designed to ensure a superior grip on both, wet and dry
terrains. These bike tyres come with an angular block pattern which results in better traction
as the block act like teeth and fine grip any surface. Offering optimum safety, this one comes
with the ideal distance between blocks on the bike tyre which leads to easy evacuation of
water. Additionally, Gripp XL offers a stiff sidewall that adds a high-strength load-carrying
capacity. These features also make these bike tyres less prone to punctures. If you find
yourself road tripping all the time, this tyre can be your ideal pick! The CEAT Gripp XL
comes in 5 sizes, in both tubeless and tube type patterns. It is the best Royal Enfield bike tyre
and is compatible with several cruisers/adventure bikes including Royal Enfield Classic 350,
Royal Enfield Thunderbird 350, Royal Enfield Classic 500, Royal Enfield Thunderbird 500,
Royal Enfield Himalayan, Hero Karizma, Hero Xpulse 200, Hero CBZ Xtreme, and Honda
AFRICA TWIN.

The CEAT X3 features an extra layer of tread so that even if the first one wears out, the tyre’s
grip to the surface remains as good as new! The attractive tread design checks uneven tread
wear and grants the tyre a longer life. The rounded shoulder blocks aid in confident turns
without hampering ride stability. And finally, the tyre offers impeccable ride quality owing to
its innovative tread block connectors. Wobbly rides, no more! The high-quality scooter tyre is
available in the tubeless format and in one size. It is compatible with scooters ranging from
Suzukis to Honda.

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CEAT Milaze:
In CEAT Milaze have both two wheeler and four wheeler tyres. CEAT Milaze scooter tyre is
not your average offering. The long-lasting tyre features a sturdy multi-directional block
pattern which arrests tyre wear. It has 10 percent more tread depth than conventional tyres
which results in longer tyre life. Its continuous centre groove makes riding more responsive
and super comfortable. The CEAT scooter tyre is available in tube-type as well as tubeless
formats. It comes in four sizes and fits over 30 leading scooter brands in the country. In
CEAT Milaze the CEAT Milaze X3 car tyres get this ‘extended life’ feature because of its
innovative tread design, unique compound, and high strength structure. The tyres are crafted
for those car owners who are mileage conscious. They also integrate the key features of a
quality car tyre - safety and long life. Specially designed to offer a long tread life, the sturdy
car tyres are available in over 15 sizes and can fit close to 120 vehicles.

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MARKET Analysis - CEAT Tyres
Objective: To determine the attractiveness of a market and to understand its evolving
opportunities and threats as they relate to the strengths and weaknesses of the firm

Market Structure: CEAT is one of the largest tyre manufacturers in terms of

revenue and is one of the fastest growing tyre company in India. Recently, CEAT became a
$1_Billion Company and was recognised as one of India’s Top 25 Workplaces
(Manufacturing) by the Great Place to Work Institute. The Replacement, Original Equipment
Manufacturing (OEM) and International Business segments accounted for 59%, 29% and
12% of CEATs revenue, respectively, in FY19. Currently, CEAT has footprint in over 100
countries across the world. CEAT has plants in Nashik, Mumbai, Halol, Ambernath and
Nagpur. With the upcoming unit in Chennai, CEAT will have six plants in India. Ambernath
plant is undertaken by CEATs wholly owned subsidiary. CEAT also has a manufacturing
facility in Sri Lanka through its overseas joint ventures. CEAT is aggressively working on
expanding its manufacturing capacities across product; categories for 2-Wheeler tyres in
Nagpur, Commercial Vehicles Radial tyre plant in Halol and Off-Highway tyres in
Ambernath while also setting up a greenfield facility for Passenger Car tyres in Chennai.
CEAT has over six decades of experience and has led the industry in innovation, product
diversity and technology. CEAT has dedicated state-of- the-art R&D centres in Halol, Gujarat
and Frankfurt, Germany. Built on the corporate ethos of reliability, dynamism, and
toughness, CEAT is committed to innovate, rebuild and help millions of vehicles travel
safely.

 Market Share:
CEAT TYRE has about 20% of the local truck and light truck tyre market.
It had 11% market share in 2010 of Indian tyre industry.
It had 12.2% market share in 2020 of Indian tyre industry.

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Market size(Current and Future):
CEAT plans to aggressively expand its capacity by 38% from 900MTPD to 1,245MTPD over
FY16–18. Till FY15, the company outsourced its entire 2W/3W capacity (including tubes) of
270MT/day and was facing difficulty in expanding capacity on the outsourcing platform due
to limited investing capabilities of its outsourcing partners. To maximize revenue growth
potential of the passenger segment, the company has commissioned two plants:
1) greenfield plant in Nagpur for the manufacture of 2W/3W tyres at capital outlay of
INR4.2b, producing 32MT/day till 1HFY17 (120MT/day expected at full capacity by
1HFY18) and
2) brownfield expansion of Halol Phase II for the manufacture of PC/UV radial tyres at
capital outlay of INR6.5b, producing 69MT/day till 1HFY17, (110MT/day expected at full
capacity by 1HFY18).
Also, for off-highway farm radials, it is commissioning ~100MT/day plant at Ambernath
with initial capacity of 40MT/day (INR 3.3b capex). This first phase of this plant of
40MT/day is expected to be operational in FY17 which would be further expanded to
100MT/day at cost of INR2.7b in FY18.
Also, With CEAT’s recently announced capex of INR28b by FY22, it envisages to increase
annual capacity in TBR from 110MTPD in FY18 to 310MTPD in FY22, in 2W from
290MTPD in FY18 to 430MTPD in FY22, and in passenger cars from 190MTPD in FY18 to
340MTPD in FY22. In our view, this will address supply issues until FY22, boost the 2W/PV
businesses further and help improve the market share of radial within the T&B segment.

Market Growth rate:

The Indian Tyre industry is expected to show a healthy growth rate of 9-10% over the next
five years, according to a study by Credit Analysis and Research Limited. While the truck
and bus tyres are set to register a compounded annual growth rate (CAGR) of 8%, the light
commercial vehicles (LCV) segment is expected to show a CAGR of about 14 %. The growth
of the sector is closely linked to the expansion plans of the automobile companies,  the
government’s thrust on development of road infrastructure and the sourcing of auto parts by
the global Original Equipment Manufacturers (OEMs). Some significant hurdles towards
attaining these projected growth rates could be raw material related price volatility, rupee
appreciation and the looming threat of cheap Chinese imports. The Indian tyre companies
need to make active efforts to explore newer markets as the existing markets for bus-truck
tyres, which account for about 45 % of the total export volume, is nearing saturation. There is
also an urgent need to increase the degree of radialization in order to safeguard their share in
the export market. Global tyre manufacturers have been making constant efforts to innovate
and offer a diverse range of products such as tyres with pressure warning systems, run flat
tyres, eco-friendly tyres and energy efficient tyres. In this context, the Indian domestic
companies have to pursue a growth strategy of continuous innovation and increasing
emphasis on product differentiation.

Market Profitability:

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Tyre maker CEAT reported a 19.58 per cent decline in consolidated net profit at Rs 51.72
crore for the fourth quarter ended March 31, 2020. The company had posted a net profit of Rs
64.32 crore in January-March quarter a year ago, CEAT Ltd said in a regulatory filing.
Revenue from operations declined to Rs 1,573.41 crore during the quarter under review as
compared with Rs 1,760.47 crore in the corresponding of 2018-19. For fiscal year 2019-20,
the company's net profit stood at Rs 230.06 crore as against Rs 251.08 crore in 2018-19.
Revenue from operations declined to Rs 6,778.83 crore in FY20 as compared with Rs
6,984.51 crore in 2018-19.

Nature of Competition:
Competitors of CEAT tyres are MRF tyres, Apollo Tyres, JK tyres, TVS Tyres, Balakrishna
Ind’s, Good year India. Though other companies in the same industry produce similar
products, they are completely quality wise different from CEAT. Due to the same reason,
they enjoy a good market share on different segments in their category market.

Geographical Markets:
Currently CEAT has footprint in over 100 countries across the world. CEAT also has a
manufacturing facility in Sri Lanka through its overseas joint ventures. It has its
representative offices at Indonesia Germany and the United Arab Emirates to serve customers
in foreign markets.

Company Analysis: CEAT Ltd

Objective: The objective of company analysis is to study about the company assigned i.e.,
CEAT Ltd

History and Origin:

CEAT, incorporated in 1958, is among the best tyre manufacturers in India. Besides tyres, the
company also manufacture, and markets tubes and flaps The company manufactures a wide
range of tyres for two–wheelers, three–wheelers, four–wheelers, tractors, tippers and trucks.
In 1924, CEAT International was commissioned at Turino in Italy to manufacture cables for
telephones and railways. Later in 1958, CEAT forayed into the Indian market leading to
formation of CEAT Tyres of India. The company was formed in collaboration with the Tata
Group.
Much later in 1982, the RPG Group took over the control of CEAT Tyres of India and in
1990 the company was rechristened as CEAT. The company manufactures over 6 million
tyres on an annual basis. It operates 4 Manufacturing plants – 2 in India (Mumbai and
Nashik) and 2 in Sri Lanka. It has 10 outsourcing units for tyres, tubes, and flaps. The
company also operates 3 dedicated  2–3–wheeler plants controlled by CEAT. CEAT exports
tyres to countries namely USA, Africa, America, Australia, and other parts of Asia. The
company has pan–India network of 36 regional offices, over 3,500 dealers and more than 100

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C&F agents. It also provides after–sales services through its all four divisional offices,
assisted by 50 service engineers.

Profile: CEAT is one of India's leading tyre manufacturers and has a 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, earthmovers, forklifts,
tractors, trailers, and auto-rickshaws. The current capacity of CEAT tyres' plants is over 800
tonnes per day.

Location: The company headquarters is located at Mumbai. currently, CEAT has

footprint in over 100 countries across the world. CEAT has plants in Nashik, Mumbai, Halol,
Ambernath and Nagpur. With the upcoming unit in Chennai, CEAT will have six plants in
India. Ambernath plant is undertaken by CEATs wholly owned subsidiary. CEAT also has a
manufacturing facility in Sri Lanka through its overseas joint ventures.

Leadership:
Anant Vardhan Goenka - CEO and Managing Director
Arnab Banerjee - COO & Executive Director
Atul C choskey - Independent Director
H V Goenka - Chairman & Non- Executive Director

Organisational Structure:

CEO & DIRECTOR

Chairman CFO
Non Exe-Director Executive Director

Innovation practices of the company:

The Advanced Design (CAE) teams develop advanced simulation techniques in different
areas and integrate them into the development of new products and innovation processes. We
are committed to using less petroleum materials by improving the functionality and optimal
use of recycled materials. "The green steps" are accelerated to minimize the carbon footprint
thanks to our commitment to recognized experts.

Financial health and performance of the company:

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HR Practices:
This is an organisation where a candidate is welcomed by the chairman of the company and
at the end of the interview, the chairman also escorts the candidate out as a positive gesture.
Milind Apte, SVP HR, CEAT Tyres limited shares his own experience when he appeared for
an interview at CEAT. He had been waiting in the lobby for quite a while and was surprised
to find the chairman himself coming out of the room apologising for the undesirable delay.
CEAT treats its employees like family, from the time they enter the office for interviews.
Following its motto of involving the family members of the employees with the organisation,
CEAT Tyres has implemented many initiatives. The most recent one being the organisation
of the children’s day celebration, where a questionnaire was prepared for the kids of the
employees and sent to them through e-mail. On the basis of the responses, the Company
prepared a CV of the child and had it framed into a show piece worth displaying. The
showpiece was couriered to the employees as a surprise gift pack.

Corporate social Obligations of the company:

The company’s CSR activities are purely voluntary. The Company is known to do corporate social
responsibility activities beyond any statutory requirements or obligations.

Here some CSR activities of CEAT Ltd are:

Eradication Hunger, Poverty, Malnutrition

Preventive Healthcare, Water and Sanitation
Education, Employability and Livelihoods Enhancement
Gender, Equality and Women Empowerment, Senior Citizens Care
Rural Development
Others
CEAT Tyres Ltd under the leadership of RPG Foundation has initiated a sanitization drive of
trucks, delivering essential goods across Mumbai amidst the ongoing pandemic. CEAT has
partnered with All India Truck Worker's Association (AITWA), Bombay Goods & Transport
Association (BGTA) and Western Union LPG Association (WULA) to sanitise trucks across
various vehicle loading point such as Nhavasheva, Mahul, Jasai and area around the airport,
which are key points of entry/exit of vehicles that bring goods to the city. The sanitization
drive includes sanitization of the truck cabin, distribution of face masks, sanitizers and food
packets to the drivers and cleaners. Such a sanitization drive will ensure safety and wellbeing
of the drivers that could aid in containing potential cases of the novel corona virus.

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To reach out to the needy people during this lockdown, CEAT has also initiated voluntary
distribution of food packets across India. So far, more than 68,500 food packets have been
distributed in Mumbai, Nashik, Chennai, Vadodara, Jaipur and Jabalpur with an average of
5,800 freshly cooked food packets distribution on a daily basis during this critical time.

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