India's fourth-largest tyre maker Ceat Ltd is implementing a dual-brand strategy following its $225 million acquisition of the Camso brand's off-highway construction equipment bias tyre and tracks business in December 2024. According to latest reports, the company is taking direct control of its acquired Camso brand's customer relationships by October-November 2026, transitioning away from Michelin's distribution network. This strategic move is expected to unlock the 25% to 30% margin currently captured in Michelin's distribution chain, as the Harsh Goenka-led RPG Group's flagship firm aims to target customers who purchase tyres across categories and cross-sell Ceat and Camso products. The company has invested over the past few quarters in building a logistics network and leadership team in North American and European markets, preparing for the full transfer of Camso brand customers over the next few months.
As reported by Mint, managing director and chief executive Arnab Banerjee highlighted significant cross-selling potential between the two brands. "The biggest synergy will come in some of the customers who take both agriculture tyres and construction tyres and tracks. There are some customers who take all of this," Banerjee explained. "So we have our own set of customers, Camso has its own set of customers, and there is a commonality, an overlap. So there is an opportunity to cross-sell to those customers. That will come from day one." Camso has a presence in off-road tyres, wheels, rubber tracks, and track systems for material handling, construction, agriculture, and powersports, while Ceat specializes in on-road tyres for commercial vehicles, passenger vehicles, motorcycles and scooters.
According to latest financial results, Ceat's consolidated revenue grew 22% year-on-year to ₹4,318 crore in Q1 FY27, driven by strong replacement and domestic volume growth. However, consolidated net profit slumped 96.4% year-on-year to ₹4 crore in Q1 FY27, heavily impacted by negative EBITDA from the transitionary Camso business. The company's net profit crashed 96% to ₹4 crore in the June quarter due to higher commodity costs and investments related to setting up networks worldwide to serve Camso's clients. Ceat's shares have fallen 13% in 2026, compared to a 3.5% fall in the Nifty Auto index. Analysts at Emkay noted that "Camso's recovery is expected to be back-ended as customer migration progresses, 60% completed in 1Q; 90% by September," with startup costs and underabsorption weighing on FY27 profitability before benefits accrue from FY28 onwards.
The company is adopting cumulative price hikes, including 5% in Q1/July and an additional 2% in August 2026, to offset 8-10% raw material cost inflation, particularly from natural rubber prices hovering near 15-year highs. Ceat has de-prioritized the U.S. off-highway tyre market due to persistent tariff headwinds and low profitability, focusing instead on higher-profitability regions. The domestic replacement market, which accounts for about 53% of CEAT's revenue, remains a key cushion for the industry. The company plans to position Ceat as a value-for-money brand while Camso will be its premium offering in what he described as a consolidated dual-brand play.
The expansion into international markets comes as Indian tyre makers seek new growth avenues following robust domestic demand. CEAT has drawn up a plan to earn a third of its consolidated revenues from the international business in the next five years, up from around 25% currently, with the company prioritising the capability to develop higher-end tyres and capacities. "In the 33% plan, we have not built any inorganic (growth)," CFO Kumar Subbiah explained. Europe is a major market for CEAT, where the company has seen strong traction in passenger car tyres, though capacity availability remains a constraint. The US market contributes under 5% to CEAT's export share, with the company not finding exporting to the US profitable due to inability to fully pass on Trump administration's tariff impacts. In the US, CEAT wants to focus on specific categories such as farm radial or Camso-branded tyres, de-risking from over-focusing on normal passenger and truck tyres.
