CEAT is poised to redefine the tyre industry in Sri Lanka following its strategic agreement to acquire Camso's Off-Highway construction equipment tyres and tracks business from Michelin. This $225 million (SLR 65 billion) all-cash acquisition, encompassing two state-of-the-art manufacturing facilities in Sri Lanka, marks one of the largest foreign investments in the nation in recent years.
During a recent visit to Colombo, Arnab Banerjee, Managing Director and CEO of CEAT, and Amit Tolani, Chief Executive of CEAT Specialty, along with representatives from CEAT Kelani Holdings Pvt Ltd, engaged in high-level discussions with key Sri Lankan dignitaries. These included Dr Harini Amarasuriya, Prime Minister of Sri Lanka; Santosh Jha, High Commissioner of India; and other prominent officials from the Ministry of Labour, Ministry of Finance and Planning, Board of Investment, and Export Development Board of Sri Lanka.
The acquisition which significantly enhances CEAT’s presence in the global Off-Highway Tyre (OHT) market is expected to deliver multifaceted benefits to Sri Lanka. The integration of Camso’s advanced manufacturing portfolio will position Sri Lanka as a global hub for tyre manufacturing, fostering economic stability through increased foreign exchange earnings and creating substantial direct and indirect employment opportunities in manufacturing, logistics, and allied sectors. CEAT currently meets over 50% of Sri Lanka’s tyre demand.
The acquired facilities bring advanced capabilities in compact construction tyres and tracks, granting CEAT access to over 40 global OEMs and 200 international distributors. This move will enable the company to diversify its product offerings and expand into high-margin OHT segments, while simultaneously boosting Sri Lanka’s industrial output. CEAT’s emphasis on manufacturing excellence is further underscored by its plans to leverage Camso’s technology for operational advancements, benefiting both domestic and international markets.
Banerjee emphasised the significance of this acquisition in shaping the future of Sri Lanka’s tyre industry, stating, 'This investment is not just about expanding CEAT’s footprint but also about strengthening Sri Lanka’s industrial capabilities. Our goal is to create a global manufacturing hub that drives innovation, fosters local employment, and contributes to the economic progress of the nation.'