NSE Symbol: CEATLTD | BSE Code: 500878
Ceat Ltd, which is a part of the RPG conglomerate is one of the chief tire producers in India. The company provides an extensive range of tires to leading Original Equipment Manufacturers across the world. They manufacture a variety of tires which cater to various segments, which covers tires for heavy-duty trucks and buses (T&B), LCVs, earthmovers and forklifts, tractors, trailers, passenger cars (PC), motorcycles, scooters and auto-rickshaws. They offer more than 7 million tires in a year and the company controls about 13% of the Indian tire market. The company runs from two plants in Maharashtra, one plant in Bhandup and the other one in Nasik. They have a strong national network consisting of 34 regional offices and above 3,500 dealers among which nearly 100 are exclusive dealers operating the CEAT Shoppe outlets for passenger car segment and 96 dealers who are running the CEAT HUBs for the Truck & Bus Segments. The company has their presence in around 110 countries.
Ceat Share: History and Trends
Ceat Ltd was consolidated in the year 1958 and it was named as Ceat Tyres of India Ltd. The company was formed in collaboration with Tata Group. The company was founded with the primary object to construct, produce, prepare, manufacture, sell,press, vulcanize, repair, retread, purchase, import and to deal in tires, semi-tires for all kinds of vehicles and also sell inner tubes, flaps and repairing material in general. For the last 50 years, the company has secured a strong presence in both domestic and international markets.
In February 1960, the first tire was rolled out from the company's factory in Mumbai. In the year 1972, they built a Research and Development unit in their plant in Bhandup. In 1981, Deccan Fibre Glass Ltd was merged with the company. In 1982, the RPG Group acquired the company. The company with the Pradeshiya Industrial and Investment Corporation of UP Ltd. developed a joint venture company, namely UPCOM Cables Ltd, with a technical collaboration with Ceat Cari of Italy. In the same year, CTI Investments Ltd, Ceat Investment Ltd and Ceat Finance Co Ltd became the wholly-owned subsidiaries of the company. The company also got into a collaboration with Yokohama Rubber Company of Japan to stay up-to-date with the technological progress in the tire industry and also to develop radial tires fitting to the Indian road conditions. In 1983, Atlantic Holdings Ltd and Malabar Coastal Holdings Ltd turned into the subsidiaries of the company. In 1987, the company started a technical collaboration agreement with Toray Industries Inc of Japan for establishing a factory for the manufacturing of nylon industrial yarn/cord and nylon tire cord fabric at Malanpur, located in Madhya Pradesh. In 1988, the company signed an agreement with Boseki Co Ltd, a Japan-based company, for advanced technology for the expansion of the licensed capacity of the fiberglass division to 5,000 tonnes per year.
In August 1988, Meteoric Industrial Finance company also became a subsidiary of the company and in July 1989, Murphy India Ltd merged with the company. Meanwhile, the company was renamed from Ceat Tyres of India Ltd to Ceat Ltd in 1990.
In 1993, the company ventured into a collaboration with Yokohama Rubber Company of Japan for the production of Tyres in the Nasik plant, which is located near Mumbai.
In 1996, the company began a new radial car tire Maestro, the first radial tire in India to use state-of-the-art polyester tire cord technology coupled with steel belts. They also initiated a new heavy-duty product known as Stamina, which is a light commercial vehicle tire. The radial tire plant has initiated industrial production in Nasik and the formula one radial tire was introduced in the market.
Ceat is the first tire company in India that was awarded the prestigious International accreditation ISO/TS 16949 - 2002 Quality Standard Certification. The company opened an agreement with Pirelli of Italy for outsourcing radial tires, which were marketed in the brand name, CEAT Spider Radials.
In the year 2004-05, Malabar Coastal Holdings Ltd discontinued being a subsidiary company. In the year 2005-06, CEAT Holdings Ltd, CEAT Ventures Ltd and Meteoric Industrial Finance Company Ltd, which is the wholly owned subsidiary companies merged with the company in 2006.
In the year 2006-07, Associated Ceat Kelani Venture, which is a joint venture company in Sri Lanka, commissioned the company's radial plant.
In the year 2007-08, the company proposed to set up two grassroot plants, one of the plants will be meant for Specialty Tyres and the other for Radial Tyres for Cars, Utility Vehicles and Trucks with a total capital expenditure of about 900 crores.
In March 2008, the company marketed approximately seven acres of surplus land in Mumbai for 1.3 billion.
In the year 2008-09, the company actively implemented the scheme of arrangement and consequently, the investment undertaking of the company was shifted to CHI Investments Ltd
The company is in the process of building a plant in Halol, Gujarat with an initial capacity of 90 metric tonnes per day and a planned expenditure of roughly 500 crores. The plant is anticipated to be equipped for commercial production in the financial year 2010-11.
For the FY2019, Ceat Ltd has received mixed reviews in terms of performance. Due to the increase in the prices of raw material used, the costs for the company have been on an on a rising slope thus decreasing the operating profitability of the company. The company is predicted to gain from the increase in market share in the passenger vehicles and the two and three wheeler segments and overall capacity expansion. All these factors along with the reasonable valuations predicted by market analysts makes Ceat Ltd a great long-term portfolio.
Since January 2018, the Ceat Ltd share price has been dropping. The highest value of Ceat Ltd share price was â‚¹2001.95 in January and the lowest share price for Ceat Ltd was â‚¹1016 in September 2018.