Arnab Banerjee the Managing Director and CEO of CEAT Limited explains that there is typically a delay of about a quarter before any price hikes by OEMs take effect. He mentions that there may be a need for an additional 2-3% price increase by September. Banerjee also highlights that India relies on imports for about 40% of its rubber needs and that natural rubber prices are currently at a 15-year high. He points out that the increasing popularity of SUVs in the car market is boosting premium tyre sales. Additionally Banerjee mentions that raw material prices have risen by 4-5% quarter-on-quarter. He notes that demand in the OEM segment is now showing signs of improvement with double-digit growth seen in the two-wheeler replacement segment. Banerjee also reveals that 20% of CEAT's sales come from the replacement market and that China poses a significant challenge as a competitor in export markets. Lastly he mentions that CEAT plans to invest around 1000 crore rupees this year for capital expenditure.
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17 сен 2024
