CEAT bringing radial ag lines to the U.S.

CEAT is launching its brand in North America with an advertising campaign "The Power of CTR," with CTR standing for compaction, traction and roadability.

The company, with input from Tyres International, is in the process of establishing a "quality" network of dealers to help carry out the launch.

The decision to ramp up efforts in the U.S. at this time coincides with the commissioning earlier this year of a radial tire plant in Ambernath, in India's Maharashtra state. Mr. Mundra said that factory, along with a dedicated R&D team and test center, will allow CEAT to address the "long-standing demand from customers" to expand into radials.

CEAT invested nearly $50 million in the plant, which is rated at 40 metric tons per day in the first phase, with expansion to 100 tons per day planned.

Specialty/farm tires represented 12 percent of CEAT's sales in its most recent fiscal year, or roughly $111 million.

CEAT's U.S. business initiative starts with the Farmax R85, radial farm drive-axle designed to provide low compaction and high traction in the field and stable handling on the road, thanks to its dual lug-angle design.

Although the company will feature its array of radial ag tires for tractors, harvesters, implements, slurry tankers and so on, CEAT remains committed to expanding its range of bias farm, industrial and OTR segments as well, Mr. Mundra said.

The CEAT name originally was that of an independent Italian cable and tire maker — for Cavi Electrici Affini Torino — that expanded to India in the late 1950s. Pirelli acquired Ceat in the 1970s and sold the Indian business to CEAT's parent company RPG Group in 1981.

RPG acquired global rights to the CEAT name in 2010, enabling it to explore more international business for the brand.

In its home market, CEAT has OE supply agreements with global farm machinery makers operating there, like JCB, CNH, CAT, Daimler, Atlas Copco, Wirtgen Hamm, Mahindra, Tata Hitachi, Terex, etc.

CEAT becomes the fourth Indian tire maker with its own sales subsidiary in the U.S., joining Apollo Tyres Ltd., Balkrishna Industries Ltd., and MRL Tyres Ltd. (formerly Mahlhotra Rubbers Ltd.).

Tarang Srivastava, formerly with the Indian tractor maker Mahindra & Mahindra, heads up the new U.S. subsidiary, CEAT Specialty Tires Inc., in Charlotte.

Marty Bezbechenko, president of Tyres International, views the establishment of the U.S. sales company as "very positive" for both companies and a development that builds on a 40-year relationship.