RPG Group flagship firm Ceat has signed a definitive agreement to acquire two Sri Lanka-based tyre making plants and the brand Camso, all owned by world’s largest tyre maker Michelin, for Rs 1,905 crore (about $225 million). This is Mumbai-based company’s first-ever acquisition.
Camso is a premium brand in off-highway construction equipment tyre and tracks segment, with strong equity and market position in the European Union and North America aftermarket and original equipment segments, Ceat said.
Arnab Banerjee, MD & CEO, Ceat, said, “The Camso brand is an excellent fit with the growth strategy of Ceat OHT (off-highway tyres) business, thereby improving our margin profile. Access to the most premium customers, a high-quality brand and a qualified global workforce is what excites us the most about this acquisition.”
The Camso brand will be permanently assigned to Ceat across categories after a 3-year licensing period. Midigama Tyre Division and Casting Product Division, the Michelin-owned division, clocked revenues of around Rs 1,800 crore ($213 million) in 2023. Ceat added that the acquisition will expand its product portfolio in the high-margin OHT and tracks segments, which includes agriculture tyres and tracks, harvester tyres and tracks, power sports tracks and material handling tyres. Michelin will, thus, exit from the activities related to compact line bias tyres and construction tracks.
Both Michelin and Ceat will work together to implement appropriate measures for all 1,587 employees of the sold division. Nour Bouhassoun, senior vice president, Beyond Road Business Line at Michelin, said, “Michelin firmly believes that Ceat is the right fit to carry on our bias tyres and tracks for compact construction equipment business. Both our companies are fully committed to ensuring a smooth transition for our employees and business continuity for our customers and suppliers.”
Over the last decade, Ceat has been focusing on building its OHT business, which now consists of more than 900 product offerings and covers around 84% of the range requirement in the agricultural segment. The buy-out will give Ceat access to a global customer base including over 40 international OEMs and international OHT distributors. The track segment is a technologically superior segment with a limited number of global players, claimed Ceat.
