Anant Goenka, M.D.

Tire maker Ceat expects record sales in the second half of the fiscal year as production capacity expands and demand from automakers, tire replacement markets and exports improves.

Anant Goenka, managing director of the company’s new car Ceat, told The Economic Times that the tire plant in Chennai is operational and “fully utilized”, leaving room for further growth. The company has also laid the foundation for upcoming truck tires. Plant.

“We are very confident. Over the past year and a half, we have built enough capacity and room for growth. The export market is a huge opportunity despite the challenges in container supply.” Goenka said.

The company said that while semiconductor shortages are hurting automotive production, supplies to automakers are improving. This is largely due to the commercial vehicle. (CV) manufacturing recovery.

Meanwhile, the tire replacement market is picking up across industries as the economy gradually opens up. Exports are also on the rise as the global economy recovers, Goenka said.

The company plans to invest Rs 70-80 crore in regular capital expenditure this year to expand its production capacity, including building a new automotive tire plant, addressing some bottlenecks at its commercial vehicle tire plant and building a new commercial vehicle tire plant at its Chennai base.

In addition, we have prepared a portfolio of electric vehicle tires and are currently the leader in tires for electric two-wheelers. Wheelers. Goenka has supplied to the electric two-wheeler industry and claims to have 90% market share in the industry.

Margins were under pressure in the last quarter due to rising costs, but the company plans to shift higher margins to the sector. Consumer costs will gradually decline over the next few quarters, and in September, the company reported an EBITDA margin of 9%. Google expects the company’s long-term average margins to improve further to 11 percent in December or March, and then further.