Ceat to set up truck radial unit in 2 years

Ceat, the RPG-group company which forayed into the truck radial segment recently, is planning to set up a manufacturing facility for the same in two years.

The company is currently importing tyres from the European tyre major, Pirelli, and will set up its own facility to manufacture truck radials once value sales of truck radials reaches around 7-8 per cent of its total turnover.

"We have just launched truck radials so we don't expect a significant contribution from these this year. We expect it to contribute around 10-15 per cent of our turnover by 2007 but we will be ready with a plant for truck radials by 2006," said Kalyan Paul, vice-president, sales and marketing.

The penetration of truck radials is expected to take off in three years with the infrastructural development in the country.

Tom Thomas, vice-president, technical, added that the introduction of high-end trucks and tractor trailers by multinationals such as Volvo and the yet-to-be-launnched Daimler Chrysler and MAN range of trucks will also aid rapid radialisation of the Indian truck tyre segment.

Radialisation in the Indian truck segment is currently just at 2 per cent, which puts it at a very nascent when compared with 90 per cent radialisation in US and Europe, 40-60 per cent in most South-east Asian countries and 35 per cent in Pakistan.

On the other hand car radials have achieved a near 90 per cent penetration.