Tyre market leader CEAT zooms in on motorcycle segment

Thursday, 19 June 2014 00:00 - - {{hitsCtrl.values.hits}}

Achieves 20% market share and plans further expansion of capacity and range

CEAT Kelani Holdings, the company that manufactures half of Sri Lanka’s tyre requirements, has reported strong sales of motorcycle tyres since December 2013, enabling the company to end the financial year with a market share of 20% in the segment. The company has added six new sizes of motorcycle tyres to its portfolio over the past six months and said it plans to add another seven before the end of 2014, by which time it will offer 25 of the most popular sizes in the local market. “We now sell more than 13,500 motorcycle tyres per month, and are looking at investing in expansion of capacity and range to further grow our market share,” the company’s Managing Director N.C. Venugopal said. A Rs. 11 billion company (2013-14), CEAT has accounted for nearly 50% of the country’s tyre requirements since the second quarter of the concluded financial year, contributing to a massive saving of foreign exchange for Sri Lanka through import substitution. The brand currently has market shares of 57% for tyres in the Truck/Light Truck category, 32% in radials, 46% in 3-Wheeler and 73% in the agricultural segments. In November last year, as part of the company’s renewed focus on the two-wheel segment CEAT Kelani introduced five new tubeless nylon-cased motorcycle tyres with unique new tread compounds and trendy directional patterns. These exciting new tyres are in the sizes of 90/90-17 (6PR), 3.00-17 (6PR), 3.00-18 (6PR), 100/90-18 (6PR) and 3.50-10 (4PR). They fit popular motorcycle models such as TVS Apache RTR, Bajaj Pulsar, Discovery and Platina, TVS Star Sport, Hero Glamour, Honda Unicorn, Hero Karisma, Honda Dio and Hero Pleasure. This was followed by the launch in March this year of the tube type 2.75-14 (4PR) tyre for the Honda MD90, popularly known in Sri Lanka as the ‘Thapal 90’. “All of these tyres are specially designed for excellent handling and grip, better cornering stability and durability, and represent the design and production values that have made CEAT the leading tyre brand in Sri Lanka in the radial and commercial vehicle segments,” Venugopal added. A global tyre brand present in 110 countries and now headquartered in India, CEAT is an acronym that stands for Cavi Electrici Affini Torino, or Electrical Cables & Allied Products of Turin, with origins that date back to 1924 in Italy. A National Business Excellence Award winner in 2010, 2011, and 2012 and a National Quality Award winner in the ‘Manufacturing – Large’ category in 2013, CEAT – Kelani Holdings is a successful Indo-Sri Lanka joint venture between the RPG Group of India and Kelani Tyre – Sri Lanka. The company operates three manufacturing units in Sri Lanka and employs a workforce of 1,000 people.