CEAT Ltd. Targets Double-Digit Growth Amidst Climbing Rubber Prices

CEAT Ltd. anticipates double-digit growth in replacement and international business despite high natural rubber prices necessitating price hikes. The company expects robust demand and a rural market turnaround to drive growth, projecting stable progress unless unforeseen issues arise. CEO Arnab Banerjee highlights positive developments across various segments.

CEAT Ltd. is projecting double-digit growth in its replacement and international business this fiscal, despite challenges posed by soaring natural rubber prices, according to MD and CEO Arnab Banerjee.

The tire manufacturer has already implemented price hikes of 2-2.5% in the replacement segment since May and anticipates another round by July's end. Nevertheless, Banerjee is optimistic about robust demand across categories, particularly with the resurgence of the rural market.

Despite rising natural rubber costs impacting margins, the company's premiumization strategy and recovery in the commercial vehicle and two-wheeler segments show promise for stable growth. With the rural market rebounding and overall GDP growth strong, CEAT remains committed to achieving double-digit growth.

(With inputs from agencies.)