CEAT fetes top dealers as it nears landmark

CEAT Sri Lanka expects to end 2007-08 with a turnover of almost Rs. 5 billion, achieving a performance milestone that reflects its status as the country's top pneumatic tyre manufacturer, leading dealers were told last week.

This result would represent a healthy growth of 35 per cent over the previous financial year, as well as a four-fold increase since 2001-02, the company disclosed at a gala awards function in Colombo. About a quarter of this year's revenue would come from exports.

Sixty five awards were presented to top notch tyre dealers from all over Sri Lanka who were felicitated for their contributions to the company's growth and its market leadership in the commercial tyre segment at this event.

Addressing dealers CEAT Sri Lanka Chairman, Chanaka de Silva said exports had grown over 75 per cent in 2006-07, enabling the company to grow in "leaps and bounds."

Declaring that CEAT Sri Lanka is "poised to leap into the future with a lot of energy and confidence," he said the company had already become a key player in the radial tyre market with a world class range, just one year after it invested Rs. 350 million in a state-of-the-art radial plant.

CEAT Sri Lanka Managing Director, Oscar Braganza said the acid test to determine whether a product's quality is top notch and the company is successful is its performance in export markets.

CEAT's tyre exports from Sri Lanka would generate revenue in excess of Rs. 1.2 billion in the current year, he said. Another key indicator of quality is the percentage of returns, Braganza said, disclosing that CEAT Sri Lanka's ratio of returns matches the global standard.

Looking to the future, he said CEAT plans to add three new sizes to its three-wheeler tyre range, develop a new three-wheeler tyre, add a new size to its radial range, introduce a new heavy-duty, higher load bearing tyre range for commercial vehicles and give its existing products a face-lift.

Several initiatives to improve the Return On Investment (ROI) of dealers and make the selling process even easier are also in the pipeline, Braganza said. Dealers who contributed significantly to the company's growth received certificates and handsome trophies at the ceremony, which was themed 'Maha Pare Peraliya' (Revolution on the road) and borrowed some nuances from the political rallies that are common in Sri Lanka.

CEAT Sri Lanka's top dealer for 2006-07 was M. J. R. Peiris & Sons (Pvt) Ltd., of Kandy.

The first local tyre manufacturing entity to obtain ISO 9000 certification, CEAT Sri Lanka has a market share in excess of 60 per cent in the Commercial tyre segment, and the company is close to achieving market leadership in the Radial tyre segment as well.

CEAT Sri Lanka has also conquered many export markets, and today exports to over 14 countries. The company was the recipient of a National Productivity Award in the Large Scale Manufacturing category at the awards event last month. CEAT Sri Lanka employs more than 800 people at manufacturing plants in Kalutara and Kelaniya.