CEAT Navigates High Rubber Prices with Strategic Growth Focus

CEAT Ltd expects relief from high raw material costs in the second half of the fiscal year due to a 15-year high in natural rubber prices. Despite this, the company's aftermarket business shows strong growth, and international operations are anticipated to recover as logistical challenges ease.

CEAT Ltd, a homegrown tyre giant, is optimistic about reduced pressure from skyrocketing raw material costs in the latter half of the fiscal year. This follows a 15-year peak in domestic natural rubber prices, as stated by Managing Director and CEO Arnab Banerjee.

The company foresees continued double-digit growth in its aftermarket operations, despite challenges in international business due to container shortages and steep freight costs in the fiscal's second quarter. The peak Rs 250 per kg domestic rubber price posed significant hurdles in the first half, Banerjee revealed.

Banerjee remains hopeful for improvement in the fourth quarter, with rubber prices already dropping to approximately Rs 200 per kg. Both the aftermarket and replacement sectors are tipped to maintain strong growth, though high international freight rates remain a concern, Banerjee explained to PTI.

(With inputs from agencies.)