CEAT MD & CEO Arnab Banerjee: OHT Business To Contribute 23-24% in Turnover

In a bid to tap into off-highway tyres (OHT) business, Indian tyre maker CEAT inked a deal to acquire Camso. With this, contribution from international business is set to cross 25% from day one and will also be EBITDA accretive. Notably, sales are expected to increase to 27-28%, and even 30% over the next three to four years.

Can the acquisition turn out to be EPS accretive?

As per Arnab Banerjee, MD & CEO, Ceat, It’s set to be EPS accretive over sometime. The company is set to get possession of the business by May-June of FY26 and thereafter the company will be able to consolidate the result.

Acquisition

CEAT is set to fund this acquisition with a mix of debt and equity in the ratio of 70:30, said Banerjee. Moreover, debt-equity is at 0.5, while debt EBITDA stands at 1. Capex has increased from ₹850 crore to ₹1050 crore.

OHS Segment Contribution

Following the acquisition, the contribution of international business will increase from 20% to 25% in the next 2-3 years. Overall turnover will also increase in the range of 23-24% and will gradually increase to 27-28% or even 30% in the coming three to four years.

MD & CEO Arnab Banerjee: OHT Business To Contribute 23-24% in Turnover

Banerjee said that price hikes will be passed on in truck-bus radial segment, in passenger car segments. The company is also planning to increase the prices in international business but is unclear about this decision.