CEAT Limited is aiming to significantly strengthen its global footprint in the premium off-highway tyre (OHT) market following its acquisition of the Camso brand and related assets from Michelin Group. The RPG Group company expects the acquisition to unlock substantial long-term growth opportunities, including higher operating margins and expanded international market access across agriculture, industrial, and construction equipment segments. CEAT had announced in September its plan to acquire the Camso premium brand globally, along with Michelin’s Sri Lankan manufacturing assets. The acquisition is expected to transform CEAT into a major global player in the high-margin OHT industry.
Company Targets Strong Margin Expansion
Currently, CEAT operates at EBITDA margins of around 13–15%. However, the company expects the Camso business to significantly improve profitability once the Sri Lankan manufacturing facility achieves full operational independence and the brand transition process is completed.
According to Amit Tolani, CEO of CEAT Specialty Tyres, the company will gradually take control of Camso’s customer accounts from Michelin, with the transition expected to be completed by the second quarter of FY27. Tolani stated that from the third quarter onward, CEAT will manage the entire sales and demand operations for the business.
Operational Independence Planned Over Next 12–18 Months
CEAT expects to achieve complete operational independence within the next 12 to 18 months. This includes gaining control over procurement, supply chain operations, and upstream manufacturing processes at the Midigama facility in Sri Lanka. The company plans to install additional upstream equipment at the facility to strengthen manufacturing integration and improve operational efficiencies. The complete transfer of Camso brand ownership from Michelin to CEAT is expected to take place over the next three years.
Improving Global Demand Supports Expansion
According to Tolani, the off-highway tyre industry has started witnessing an upward trend after a prolonged slowdown. Demand from OEM customers has gradually improved over the last 12 months, supporting CEAT’s expansion plans. As reported by tyres.cardekho.com, the company believes the combination of improving global demand, expanded product access, and a stronger international customer base will create significant long-term growth opportunities.
