CEAT Limited, one of India’s leading tyre manufacturers and a flagship company of the RPG Group, has officially completed its acquisition of the Camso brand’s off-highway construction equipment tyre and tracks business from the Michelin Group. The all-cash transaction, valued at approximately 225 million dollars (Rs 1,900 crore), marks a transformative leap in CEAT’s ambition to become a global leader in the high-margin off-highway tyre (OHT) segment.
The acquisition includes two state-of-the-art manufacturing facilities in Sri Lanka, global brand rights to Camso, and access to a premium customer base across Europe and North America. This strategic move not only expands CEAT’s product portfolio but also strengthens its presence in the compact construction equipment market, which has seen rising demand for specialized tyres and tracks.
Key highlights of the acquisition:
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CEAT acquires Camso’s compact construction equipment bias tyre and tracks business from Michelin in a 225 million dollar deal
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The transaction includes two manufacturing plants in Midigama and Kotugoda, Sri Lanka
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CEAT gains global ownership of the Camso brand after a three-year licensing transition period
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The acquired business posted revenues of 213 million dollars in calendar year 2023
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CEAT commits an additional investment of 171 million dollars (Rs 1,500 crore) to expand Sri Lankan operations
Strategic rationale and global positioning
Camso is a premium brand with deep equity in the off-highway tyre and track segment, particularly in the European and North American OEM and aftermarket channels. With this acquisition, CEAT gains access to over 40 international original equipment manufacturers and premium distributors, significantly enhancing its global reach.
The integration of Camso’s compact construction equipment business complements CEAT’s existing agricultural and industrial tyre offerings. It allows CEAT to diversify into high-margin segments such as power sports tracks, harvester tyres, and material handling solutions.
Manufacturing and operational expansion
The Midigama and Kotugoda facilities in Sri Lanka will serve as key production hubs for CEAT’s expanded OHT portfolio. These plants will focus on export-oriented manufacturing, leveraging Sri Lanka’s strategic location and skilled workforce. CEAT’s 171 million dollar investment will be directed toward capacity enhancement, technology upgrades, and employment generation, securing jobs for over 1,400 workers.
This investment also reinforces Sri Lanka’s position as a manufacturing hub for specialty tyres and aligns with India’s growing role as a source of foreign direct investment in the region.
Brand transition and licensing
Under the terms of the agreement, CEAT will operate the Camso brand under a licensing arrangement for three years, after which full ownership will be permanently assigned. This phased transition ensures continuity for existing customers and suppliers while allowing CEAT to gradually integrate Camso’s brand equity into its global marketing strategy.
The Camso brand will continue to serve its established customer base during the transition, with CEAT committed to maintaining product quality, service standards, and innovation pipelines.
Leadership commentary and future outlook
Arnab Banerjee, Managing Director and CEO of CEAT Limited, described the acquisition as a pivotal step in CEAT’s long-term vision to become a significant player in off-highway mobility. He emphasized the complementary strengths of both brands and the cultural alignment in their approach to quality and innovation.
Amit Tolani, Chief Executive of CEAT Specialty, highlighted the transformative impact of the acquisition on CEAT’s capabilities, noting that the integration of Camso’s expertise will enable the company to deliver greater value to customers and expand into new geographies.
Conclusion
CEAT’s acquisition of Camso’s off-highway construction equipment tyre business is a landmark move that reshapes the company’s global trajectory. By combining CEAT’s manufacturing excellence with Camso’s brand legacy and market access, the company is poised to lead in the evolving landscape of off-highway mobility. This strategic consolidation not only enhances CEAT’s product depth but also reinforces its commitment to innovation, sustainability, and global competitiveness.
Sources: Business Standard, Autocar Professional, CEAT Specialty Blog, Michelin Group Official Announcement, Economic Times
