Business

CEAT ramps up ‘2-wheeler’ tyre production by 85% in 3 months

Published

4 years ago

2020/09/18

CEAT Kelani Holdings has announced the achievement of an 85 per cent increase in the production of tyres for the ‘two-wheeler’ segment over just three months, as a full-bodied response to the needs of the local market consequent to the temporary import restrictions introduced by the government.

Maximising capacity utilisation at its manufacturing plants at Kelaniya and Kalutara, the company pushed production of tyres for motorcycles and scooters from 27,000 units a month in June 2020 to 41,000 per month in July and August, and is on target to produce 50,000 tyres in September, increasing volumes by 52 per cent in the first step and by an incremental 22 per cent thereafter.

The sharp increases in production of tyres for the two-wheeler segment follows similar ramping up of production of truck and bus tyres as well as passenger car radials by CEAT Kelani, which prior to these increases was producing half of Sri Lanka’s pneumatic tyre requirements. To achieve the increases in two-wheeler capacity, the company said it had utilised available capacity at its three-wheeler tyre plant in Kalutara.

CEAT Kelani currently manufactures 32 different types of scooter and motorcycle tyres in 43 varying specifications, and now caters to 37 per cent of local market requirements for two-wheeler tyres.

“The import restrictions challenge domestic industries to show what they are truly capable of, and we are pulling out all the stops to fully utilise the capacity we have to support the government’s initiative of import substitution through increased domestic manufacturing,” CEAT Kelani Managing Director Ravi Dadlani said. “We are continuing to look at ways of meeting demand for the most popular categories and sizes of tyres, and are keeping the government informed of the products that we are not equipped to manufacture, so that they can be imported.”

CEAT’s increased production of truck and bus tyres has resulted in the Company producing 100 per cent of the segment’s requirements and enabled the government to make a saving of Rs 11 billion a year in foreign exchange. The Company’s latest initiative in the two-wheeler tyre segment is estimated to enable a further saving of Rs 350 million a year through import substitution, Mr Dadlani disclosed.

The expansion of production capacity for this segment of tyres has resulted in a 100 per cent increase in the production of sizes 90/90-12 TL and 90/100-10 TL that fit popular scooter models such as Honda Dio, Yamaha Ray ZR, Honda Grazia, TVS Wego, and Suzuki Burgman. Meanwhile, CEAT’s production of tyre size 90/90-17 TL that fits motorcycle models such as TVS Apache, Bajaj Pulsar 160 NF and Bajaj Pulsar 180 has increased by 400 per cent, and the Company has achieved a 100 per cent increase in the production of the 100/80-17 TL tyre that is required for the popular Yamaha FZ. Production of tyres for Bajaj Pulsar 150, Bajaj CT 100, Bajaj Platina, and TVS Heavy Duty Super XL has also increased significantly, the Company said.

Notably, CEAT Kelani Holdings has kept the prices of its tyres unchanged since December 2019 to support customers and the economy, despite the additional investments made in increasing capacity and an increase in market prices due to demand.

CEAT Kelani Holdings is considered one of the most successful India – Sri Lanka joint ventures in the manufacturing sector. The joint venture’s cumulative investment in Sri Lanka to date totals Rs 8 billion, inclusive of Rs 3 billion committed in January 2018 for expansion of volumes, technology upgrades and new product development. The company’s manufacturing operations in Sri Lanka encompass pneumatic tyres in the radial (passenger cars, vans and SUVs), commercial (Bias-ply and radial), motorcycle, three-wheeler and agricultural vehicle segments.

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Business

‘Port City Colombo makes progress in attracting key investments’

Published

9 hours ago

2024/04/25

Sahan Weerasooriya

Port City Colombo, a multi-service Special Economic Zone (SEZ) and a regional financial centre and business hub, has made significant progress in capturing key investments, as the project gears up for a tenacious drive to attract prospective land development and business set-up investors from the South Asian, APAC, and Middle Eastern regions before the end of 2024, a Port City Colombo press release said.

The release added: ‘With a strong emphasis on capturing high-value Foreign Direct Investments, Port City Colombo has on-boarded approximately forty-one companies registered as Authorised Persons (AP’s), as approved by the Colombo Port City Economic Commission. Fifty-two percent (52%) of the project’s Marina District, which includes South Asia’s first-ever luxury yacht marina and 5-star hotel, has further already attracted investment. Reputed international and local corporate entities, including Asiri Port City Hospital (Private) Limited, TIQRI, CODEGEN INNOVATIONS, 99x Technology AS, IVIVA PTE Ltd, Echelon Trade (Pvt) Ltd, and Port City BPO (Pvt) Ltd, have been additionally designated as Businesses of Strategic Importance.

‘Approximately more than twenty prospective investors are presently in the pipeline to register as Authorised Persons, demonstrating strengthened confidence in Port City Colombo’s positive outlook as a competitive regional investment hotspot.

‘Positioned within the Colombo Port City Special Economic Zone, Port City Colombo presents a low-risk financial environment that enhances the ease of doing business for global investors in Sri Lanka, whilst being economically ring-fenced against domestic macroeconomic challenges. This visionary FDI investment destination also showcases a thriving commercial ecosystem and liveable master-planned city, enabling a diversity of businesses to set up operations against the backdrop of transactions in 16 different international currencies with no capital or exchange controls, 100% foreign ownership, and fiscal incentives for 25 plus years.

‘Port City Colombo provides investors two primary options of investment: land development investments, which include residential and commercial property development, and business set-up and investments, which encompass a variety of opportunities in IT/ITes, financial services, hospitality/tourism, logistics, and so forth. Commercial entities, who are interested in investing or setting up business operations, are required to become qualified as an Authorised Person, which is defined as any individual or entity permitted by the Colombo Port City Economic Commission (CPCEC) to conduct business within the vicinity and from the area of authority of the Colombo Port City Special Economic Zone.

‘As Port City Colombo progresses forward with its vigorous AP and BSI drive, the project aims to fulfil the ambition of transforming Sri Lanka into an attractive global investment destination, whilst emulating the successful international economic models of Dubai and Singapore. For more information about our investment opportunities, please visit www.portcitycolombo.lk. ‘

Business

Rainbow Pages Champions League: 28 leading companies battling for victory

Published

9 hours ago

2024/04/25

Sahan Weerasooriya

A six-a-side soft ball corporate cricket tournament was successfully held at the G H Buddhadasa Ground in Battaramulla recently with the participation of 28 teams representing leading companies in the island. The tournament was organized by the Rainbow Pages Welfare Society. Rainbow Pages is the National Business Directory in Sri Lanka managed by SLT-MOBITEL group.

The teams in the semi-finals were Winners Global, Sonasu Connect, GM Garments, and Salota International. Winners Global won the championship, while GM Garments and Salota International were both named co-runners-up in the Champions League corporate cricket tournament.

Business

LOLC and Hayleys dominate share market trading; turnover touches Rs. 2.5 billion

Published

9 hours ago

2024/04/25

Sahan Weerasooriya

By Hiran H.Senewiratne

CSE activities were positive yesterday due to LOLC Group counters dominating the market. But there was an acute increase in Hayleys shares as well due to the company being one of six companies that tendered bids for the Sri Lanka Airlines divestiture, market analysts said.

Both indices moved upwards. The All Share Price Index went up by 77.50 points while S and P SL20 rose by 11.1 points. Turnover stood at Rs 2.5 billion with one crossing. The crossing was reported in Colombo Fort Lands, which crossed 1 million shares to the tune of Rs 30 million; its shares traded at Rs 30.

In the retail market top seven companies that mainly contributed to the turnover were; Browns Investments Rs 400 million (66 million shares traded), LOLC Finance Rs 318 million (44 million shares traded), Capital Alliance Rs 150 million (2.4 million shares traded), CIC Holdings Rs 97.9 million (1.3 million shares traded), Central Industries Rs 93.1 million (716,000 shares traded), Agsta Rs 92.9 million (11 million shares traded) and Dolphin Hotel Rs 91.3 million (2.2 million shares traded). During the day 207 million share volumes changed hands in 26000 transactions.

Yesterday the rupee opened stronger at Rs 300.00/40 to the US dollar in the spot market after closing at Rs 300.50/301.00 on Monday, dealers said. The rupee closed at 302.00/50 to the US dollar on Friday.

Bond yields were flat as buyers awaited the next development in sovereign bond re-structuring, market participants said. There were both positive and negative sentiments among bond investors, dealers said. Meanwhile, a bond maturing on 15.12.2026 was quoted at 11.32/40 percent from 11.30/40 percent on Monday. A bond maturing on 15.09.2027 was quoted at 11.92/12.00 percent, down from 11.95/05 percent. A bond maturing on 15.12.2028 was quoted flat at 12.15/25 percent.