CEAT is an Indian based Tyre manufacturing company. The company is owned by the RPG group. The CEAT company was founded in Italy in the year 1924. The company has its headquarters in Mumbai, India. CEAT is considered to be the leading tyre manufacturer in the country with a global presence.
CEAT manufactures tyres for trucks, busses, passenger cars, two wheelers, earth movers, light commercial vehicles, tractors, auto rickshaws and trailers. Let’s look at the reason behind the growth of the company’s profit even though the driving and riding of vehicles in the country has reduced.
On 4 May 2021, CEAT Ltd which is a company under RPG group had announced that the company has achieved a net profit of INR 132.34 crore during the Q3 which was ended on 31 December 2020. The net profit has been reduced to around 27.35 % when compared to the previous quarter of the same fiscal year.
The company had achieved a net profit of INR 182.8 crore in the Q2 of this fiscal year. CEAT Ltd has seen an increase in its revenue from operations for the Q3 of this fiscal year of INR 2,221 crore when compared to the Q2 of the fiscal year which was INR 1,978 crore.
When compared to a year-on-year basis the profit of CEAT tyres has seen an increase by INR 152.07 % compared to the previous year’s quarter’s INR 52.5 crore. The revenue from operations has also seen an increase on the year-on-year basis of around 26.08 %. The revenue from operations in the previous year was INR 1,761.77 crore.
Kumar Subbiah who is the CFO of CEAT Limited conveyed that the Tyre manufacturing industry is facing an increased demand with a robust demand in the replacement market. He added that the growth of the company in the last quarter of this fiscal year will largely be because of the demand by the replacement market.
He added that the company despite having a not so good quarter has grown the most in past nine months when compared to the same period during the last year. Compared to last year, the quarter 2 of this fiscal year has seen a growth of around 14 % and around 27 % in quarter 3 compared to the last year’s quarter 3 growth.
Kumar Subbiah said that for the Q4 the company is expected the demand to increase in most of the categories. He added that in the OEM sector the demand for some categories has come down after the festival season.
The company wants its growth to be driven largely by the replacement market which should be followed by the OEM. He said that around 15 % of the company’s revenue comes from exports, around 60 % through the replacement market and around 30 – 35 % from the OEM sector.
The company said that going forward it would be looking to focus on the passenger sector which will be completely on the passenger car and two-wheeler tyres.
He said that the company’s investment in Chennai and Nagpur factories is completely concentrated and directed towards the passenger segment.
Focus Markets of CEAT
The company said that it would focus on the North American and the European market in the coming years. The CFO added that the company’s presence in the European market has been increasing and the company is working towards increasing its presence in North America.
He added that there are a lot of queries from different countries that are looking to reduce Chinese manufacturers and enquiring whether India could start producing it locally and supply the required tyres to them. He added that, India is in a great position to take the advantage of the situation.
FAQ
Where are CEAT Tyres made?
Ceat tyres currently has 4 manufacturing facilities at Bhandup Nashik Nagpur and Halol and is setting up a new facility near Chennai.
When did RPG acquire Ceat?
RPG group acquired CEAT Tyres of India in 1981.
Who is Radha Goenka?
Radha Goenka is the Director at RPG Foundation.
Conclusion
CEAT had planned to invest around INR 800-900 crore this fiscal year but due to the global pandemic and the slowdown of the economy they had to cut it down to INR 550 – 600 crore. The company is planning to spend more in the next fiscal year as there is some traction and the sales are expected to increase this year.
Wadia Group has been in function since the year 1736 and is one of the oldest Conglomerate in Indian Business market. The Wadia Group businessempire has been running for over 280 years in India. Currently, it is broadly diversified in several sectors and industries which includes Textile, Chemicals, Consultancy, Plantations, Foods, Electronics, Light engineering, Health, Laminates, Real estate, and many more.
The Wadia group companies have popularly emerged as market leaders in the Wadia business field and over the functioning years, the group has developed an excellent record of managing diverse technologies and adapting to it.
Wadia Group is all about setting the foot in every possible sector and field. Wadia Group through its child Company called the famous Bombay Dyeing & Manufacturing Company Ltd. is establishing a place in the Realty Sector with rapid expansion plans.
The Group has access to around 10,000 acres of the historically acquired land at rock bottom prices belonging to Britannia Industries, National Peroxide, Bombay Burmah Trading Corp., Bombay Dyeing & Manufacturing Company and the Wadia Trust.
The Wadia Group was first founded by Loeji Nusserwanjee Wadia in 1736. The group’s journey began when the founder set up a marine construction company obtaining a contract from the East India Company. The contract was to build 355 ships including the first Wadia group ships constructed for the British navy outside England.
Over the next 150 years, the group manufactured over several ships and vessels that ploughed international waters. The year 1879 saw yet another Wadia visionary twist in the Wadia group business. With careful vision and ready to take the risk, Nowrojee Nusserwanjee Wadia moved his stakes into the textile industry.
By the next half of the 19th Century, as Wadia Group of Bombay (present Mumbai) was gaining its reputation as the 2nd largest cotton trading port in the world as well as India, the cotton capital of the world. This indicated the birth and rise of one of the greatest success stories in Indian entrepreneurship.
The Wadia Group today has a Rs 10,000 crore ($2 billion) Business operation in the world. The Wadia Group investment portfolio covers a number of industries which includes Aviation, Healthcare, Auto Components, Real Estate, Retail, Plantations, Chemicals and many more.
There are several Wadia group subsidiaries under the giant Wadia group which have been successful in their revenue and Wadia group turnover.
Britannia Industries
Britannia Industries is one of India’s leading food companies with a history of around 100 years. Britannia is the most trusted food brands in India and also manufactures brands likeNutriChoice, Good Day, Tiger, Marie Gold and many morewhich are household brands.
Britannia’s portfolio includesall the bakery products likeBiscuits, loaves of bread, Cakes, and Dairy products like Milk, Cheese, Beverages, and Yoghurt. The Britannia products are available across the country and reach around every 3rd Indian home. Britannia’s Dairy business contributes to around 5 % of its revenue and the dairy products directly reach more than 100,000 outlets.
Bombay Burmah Trading Corporation Ltd
The BBTCL founded its fortunes in the year 1863, as a public company which makes it almost 150-year-old company. It is the largest Wadia company in the Wadia Group based on its revenue of Rs 11,743 Cr.
It is the2nd oldest publicly quoted company. It is also the largest Agriculture Company In India based on company sales. The Sales Growth of 3 Years is almost 9.24 %.
Bombay Realty
Bombay Realty is the Wadia Group’s real estate company which concentrates on redefining theMumbai skyline with its two iconic developments in the heart areas of Mumbai. The prime amazing developments of Bombay Realty are The Island City Centre which is at Dadar and Wadia International Centre located at Worli.
Bombay Dyeing & Manufacturing Company Ltd
The most important company of the group establishedas a small operation of Indian spun cotton yarn dyed by hand. It has also now grown to be one of the respected brands in the business.
There is a wide variety of product portfolio like linens, towels, furnishings, leisure clothing, kids wear and a whole bunch of other products are now available across more than 2100 multi-brand stores.
All the concerned products come with the company’s hallmark finishing, great textures, designs to match the latest trends which have been synonymous with Bombay Dyeing for over a century. The Wadia group revenue stood at Rs 4,404 Cr and theSales Growth of 3 years is 33.95%.
Go Airlines
Go Airlines (India) Ltd is an aviation business of the Wadia Group and functions under thecompany GoAir. GoAir launched itsoperations as a low budget and fare carrier to make it easier to air travel and offer airline seats at a marginal premium fare across India in the year 2005.
It currently operates around 330 flights across 36 destinations and 9 international. The airline uses a state-of-the-art Airbus A320 aircraft as a part of the expansion plan.
National Peroxide
National Peroxide, a Wadia group company is India’s largest Hydrogen Peroxide manufacturer based in Kalyan, Maharashtra. It ha been operating for the last 64 years. Hydrogen Peroxide is widely used as antimicrobial chemical against a wide range of microorganisms, including bacteria, yeasts, fungi, viruses, and spores. Keeping in mind the need to do large scale disinfection, NPL has quickly developed a 3% Hydrogen Peroxide solution which can be used for disinfecting public places like airports, road, railway stations etc.
Wadia Techno-Engineering Services
The Wadia Group acquired 100% shareholding in Gherzi Eastern Limited “(GEL)”, from the Gherzi Group, as a result of which now The Wadia Group is the sole promoter of GEL. The name of ‘Gherzi Eastern Limited’ has been changed to “Wadia Techno-Engineering Services Limited” in 2012. Since its inception WTESL has been a market leader and has helped shape some of the landmark constructions in the History of modern India.
Growth of Wadia Group
Textiles is set to be the main driver for the group, while he also plans to develop the real estate business in a major way considering its growth in the business. The complete concentration will be on brand building and establishing the textile business. Textiles will remain a dominant activity for Bombay Dyeing and the group is in the process of restructuring the entire business operations, including the manufacturing and production facilities.
The group is on a revival mode to carve its growth path and has also taken initiatives for re-establishing the products as well as broad basing the market penetration. As a part of the marketing initiative, the company has adopted the task of refreshing the brand in the consumer minds, keeping intact the brand popularity.
Interesting Wadia Group Facts
In the year 1971, then 26-year-old Nusli Wadia saved Bombay Dyeing from a takeover bid from R.P. Goenka.
The second oldest ship in the world was built by the Wadia group naming “HMS Trincomalee” is still afloat today in Hartlepool, England.
The US national anthem “Star-Spangled Banner” was composed on a ship “The Minden” built by Wadias in 1812.
Nowrojee Nusserwanjee Wadia started Bombay Dyeing in a humble red-brick shed.
The Wadia Group founder Loeji Nusserwanjee Wadia was India’s one of the first master shipbuilders.
Final Note
The Wadia Group is notably the widest diversified industry in India that covers almost all the growing fields of business like textiles, chemicals, plantations, food products, electronics, health, laminates, real estate, consultancy and many more.
The history and growth of this group are legendary for a common man and it is worth knowing the facts behind the rise of this business.
Which is the oldest warship built by Wadia group or which ships built by Wadia group in bombay or which ship is built by Wadia group in bombay?
HMS Trincomalee was launched in 1817, is the ship built by Wadia Group in Bombay is the oldest British warship still afloat.
Who is the owner of Wadia group?
Wadia group owner: Wadia family.
Who is Ness Wadia wife?
While NessWadia is known for his flamboyance and arrogance his younger brother Jeh Wadia shuns the spotlight and has stayed clear of controversies. He is married to Celina, an Australian and is the Managing Director of the group’s flagship company Bombay Dyeing.
What is in the list of Wadia Group Companies?
Wadia group companies list:
Britannia Industries.
Bombay Burmah Trading Corporation Ltd.
Bombay Realty.
Go Airlines.
Is Bombay Dyeing Indian company?
Bombay Dyeing & Manufacturing Company Limited (Bombay Dyeing) is the flagship company of the Wadia Group, engaged primarily in the business of Textiles. Bombay Dyeing is one of India’s largest producers of textiles. Its current chairman is Nusli Wadia.
India is one of the largest growing markets for the automobile industry in the world and Mahindra and Mahindra is one of a kind automobile company that has evolved and changed the markets too. Mahindra advertises and puts out content that is entertaining to the targeted people anywhere in the globe and by doing so, Mahindra has attracted a global audience for many years.
Mahindra and Mahindra has taken several steps in order to promote their products which are vehicles across the globe. The company decided to use the visual media, social media, physical media and the print media so that the people become aware of its potential products.
About Mahindra and Mahindra
Mahindra and Mahindra (M&M) is one of the largest private companies in India dominating the automobile industry for decades. M&M is known as a farm equipment unit and is also the 3rd largest producer of tractors in the world and it has two major operating divisions produces more than 100,000 tractors a year.
Mahindra and Mahindra sold around more than 85,000 in the year 2005, achieving a growth rate of 30 % in the previous year. Almost 6 million farmers in India depend upon this magnificent organization.
The company’s tractor exports to the regions like the US, Africa, and several other countries in South East Asia face close competition. The company set up its manufacturing facilities at multiple locations increases the complexity of the supply operations. Therefore, the company needed an integrated solution that is able to link all the plants to optimize costs and operational efficiency and respond swiftly to customer requirements.
History of Mahindra and Mahindra
The history of this giant company illustrates the role of leadership in transforming an ageing family business into a formidable modern business player which is indeed suitable for courses on managing the family business and all sorts of strategy.
Mahindra and Mahindra, a core conglomerate Mahindra Group, was founded by Mahindra brothers Harikrishnan, Jayakrishnan and Jagdish Chandra Mahindra along with Malik Ghulam Muhammad in 1945 as Mahindra and Mohamed, a steel trading company. Anand Mahindra whos is present Chairman of Mahindra Group, is the grandson of Jagdish Chandra Mahindra.
Mahindra & Mohamed changed its name to the current Mahindra & Mahindra in the year 1947 after India-Pakistan partition and entered the automotive manufacturing business when they started the licensed production of Jeep.
Currently, M&M operates six plants in India. Its Nasik plant, which started its operations in 1980 produces five different types of vehicles, which includes main models of Scorpio and Xylo, with an annual production of 200,000 vehicles.
M&M started its E-Business initiatives in 1995 itself. This Business started with the launch of a dedicated network across 8 manufacturing locations, 33 area offices and 4 branch offices. In the year 1996, the company launched its website mahindraworld.com in the month of June, which was one of the first corporate websites.
Anand G. Mahindra is the managing director of Mahindra and Mahindra group and is given credits for turning around his inherited family business into a highly professionalized multinational firm operating in diverse business segments.
He transformed M&M from a farm equipment manufacturer into a Utility Vehicle manufacturer. By the year 2008, M&M was the leader in the Utility Vehicle segment of India. The strategies resulted in the creation of Scorpio which is M&M’s Sports Utility Vehicle (SUV). It has been the company’s claim to fame in the national and international arena. Mahindra is now venturing into all sorts of segments in the automotive industry.
Products of Mahindra and Mahindra
Mahindra and Mahindra’s Tractor Market
Mahindra and Mahindra is the major player in the tractor world in India. After an amazing growth for a few years, the tractor market in India had stagnated during the years 1998-2001.
Mahindra has been selling its tractor automobiles and utility vehicles in foreign markets including the USA. Some of the components and raw products have been imported from abroad. M&M has a 100 % subsidiary in the USA, with a strong network of 100 dealers.
Part of the expansion strategy to build a global supply chain, Mahindra USA also signed an MoU with the Korean tractor organization called Tong Yang, according to them, Mahindra will source high horsepower and sell them around the world under the Mahindra brand name.
Mahindra and Mahindra’s Growth
Mahindra and Mahindra is India’s leading SUV manufacturer auto sales numbers which stood at around 37,925 units during the year 2015 and 36,328 units during December 2014, showing a growth of 4%.
Net Revenue of Mahindra and Mahindra
A huge amount of Mahindra’s growth has come from business acquisitions. In the span of last few years, the company had bought majority stakes in Korean automaker Ssangyong, IT Company Satyam Computer Services, electric car maker Reva, two-wheeler maker Kinetic, Punjab Tractors and Australia’s Gippsland Aeronautics.
M&M has also built globally competitive products in the automotive industry. The company exports its tractors to various countries and it is also planning to export the company’s flagship product, Scorpio to the US and Europe.
Company’s Future Plans
Mahindra and Mahindra company’s future plans include entering into a variety of segments in the automotive segment using its Research and Development capabilities.
However, the new and emerging market companies like Mahindra suffer from various challenges like institutional voids, constant changes in consumer behaviour and lack of brand recognition, that test their ability to compete with global giants. However, the low-cost model alone cannot always formulate a winning strategy.
The Bottom Line
Mahindra and Mahindra also makes a partnership with multinational companies securing the future of itself. The company has touched many platforms and established itself a secure place in the Indian as well as global market.
India is a vast, populous and diverse nation encompassing many different identities, languages, cultures and religions. People here have the courage and determination to step into the unknown and explore. The roots of business in India can be traced back to the times when it was referred to as the ‘golden bird’.
This was the period when the Britishers came to India and unknowingly kindled the spirit of business in this earthy country.Indian business remained primarily focused on trading and money lending until the middle of the nineteenth century, although there was a modest demonstration effect as Indians observed a new style of entrepreneurship practiced by Europeans in India. However, things changed as the British built transport infrastructure, abolished internal customs tariffs, and established a legal system which enforced property rights and eliminated the power of government to act in an arbitrary fashion.
In Bengal, ethnic British entrepreneurs seized the opportunity to build new jute and coal industries.
In Western India, Parsees such as the Tatas created a new cotton textile industry.
Although one cannot disregard the imperialist noose the Britishers had on India, the fact remains that British rule, whatever its defects, was on the whole good for Indian business. The most negative consequences of colonialism, was that it maintained the long-standing disinclination of the Indian business elite to invest in technological innovation because of “their easy access to foreign technology, thanks to the imperial connection”. It was unfortunate that these entrepreneurs blind sided to the Britishers when it came to quality which was unexpectedly below standard. This might be considered as a bad case of “colonial syndrome,” which made them believe that whatever the leading race was using was of the highest grade. Let us see the complete story behind the topic i.e. History of Business in India and Greatest Businessmen of Decades.
Some of the earliest players in the Indian market were the Jamsetji Tata, Ghanshyam Das Birla, Ardeshir Godrej, Kailash Chandra Mahindra, Dhirubhai Ambani. Most of these legendary companies are still going strong and their kin has followed their lineage. Some interesting facts about them are:
Acknowledged as the founder of the Tata Group, Jamsetji is often referred to as the ‘father of Indian industry’.
The Tata group has also supported humanitarian causes like in 1974, when the Chota Nagpur region had become the epicentre of the smallpox epidemic, the World Health Organisation (WHO), requested the collaboration of Tata Steel. The company obliged with resources and manpower. In six months, 20,500 villages and 82 towns were inoculated. By 1975, India was declared free of smallpox, for the first time in history.
The Tata group has been a key contributor to India’s growth story, in 2018 it contributed about 4% to the GDP and paid 2.24 per cent of the total taxation in India of ₹47,195 crore highest by any group.
Ghanshyam Das Birla was the Founder of Birla Brothers Limited, a leading producer of tea, textiles, cement, chemicals, rayon, steel tubes, among others. He laid the foundation for what later became a billion-dollar empire.
During the Quit India Movement in 1942 he developed the idea of starting a commercial bank. Thus was born The United Commercial Bank Limited. Now known as UCO bank, it is one of the oldest commercial banks of India.
The company operates in more than 35 different countries & employs more than 120,000 employees worldwide with a revenue of INR 14,577 crores for the year ended 31 March 2017.
In 1897 after a few failed ventures, Ardeshir Godrej, ventures, sets up a lock company. For him, the key to success turns out to be locks.
In 1918, Godrej launched Chavi(now Cinthol), the first soap in the world to be made without animal fat.
There are many more interesting stories behind these pioneers who revolutionised Indian business scenario.
Secrets to Successful Business
Now to analyse the key aspects of successful businesses over the years, we look into various companies and the principles they swear on.
1. Desire to innovate
Bombay dyeing which was founded in 1879, having its headquarters in Mumbai. The founders are Nusli and Wadia family. The company has managed to stay afloat over 100 years, despite competition and cut-throat price wars.
The company turned to textile only after it started suffering huge losses in its dyeing business in the early 1900s.
“The company’s ability to innovate and modernise continuously has helped it survive long,” .
Indians thrive on acceptance. Lakshmi Mittal is Britain’s wealthiest man and a non-resident Indian who heads up the world’s biggest steel manufacturer, ArcelorMittal, his view says, “Always think outside the box and embrace the opportunities that appear – wherever they might be.” Mukesh Ambani, one of the richest man in the world, Managing Director of Reliance Industries Limited, has an approach to built a structure that adapts to change: “The organizational architecture is really that of a centipede, one or two don’t count. So if I lose one or two legs, the process will go on, the organization will go on, the growth will go on.”
Living more in the moment makes India’s business leaders very adaptable and opportunistic. Kumar Mangalam Birla is the Chairman of The Aditya Birla Group and he also counsels leaders to look after ‘the mind’: “Leaders must have the ability to mind your mind, which means quickly recognising when one is wrong and changing track accordingly. Also, far from being egocentric, they should have a great sense of humility.”
4. Problems are a gift
Kiran Mazumdar-Shaw, Chair and Managing Director, Biocon Ltd, shows how this works: “My philosophy in life is that every failure can be converted into a success, defeat is temporary but giving up is permanent. The way I approached it was that I am going to be just not brainwashed by perceptions. I thought let me do it my way.” The Indian born Lakshmi Mittal, head of Arcelor Mittal, knows about tough times and has this view: “Everyone experiences tough times, it is a measure of your determination and dedication how you deal with them and how you can come through them.”
Stories of personal perseverance, the ones where heroes overcome severe obstacles and achieve dizzying heights of success, have been around since the beginning of time but they never get old. They inspire us and inflame our passions, making us believe we too can follow suit.
The entrepreneurs we saw above and many more are examples of such determination and courage that has now taken India to global heights. The indefatigable will to succeed and own something which is made out of your sweat and blood is what took these pioneers to an unimaginable heights of success.
Parnas Ghosh
