Exports growth helps Ceat avail duty benefit

The RPG enterprise flagship Ceat has become the first tyre company in India to gain from the export benefit scheme introduced by the government last year.

The scheme entitles exporters to avail of a duty free entitlement certificate of 10 per cent if their freight on board (FOB) during the fiscal records a growth of at least 25 per cent over the previous year.

Ceat's exports grew from Rs 160 crore last year to Rs 207 crore, an increase of 29 per cent. The value growth of Rs 47 crore will thus translate to a duty benefit of Rs 4.7 crore, which will add to Ceat's bottom line.

"When considered in the light of appreciating rupee vis-a-vis the dollar, Ceat's exports have clocked a 35 per cent growth. All this has been achieved in the face of extremely stiff price competition from China," said a senior Ceat official commenting on the company's overseas performance.

Ceat has a marketing and distribution network in more than 60 countries including the US, Singapore, UAE, the Philippines and Nigeria, which have largely contributed to this growth. The company has also started exporting to newer geographies and has introduced country specific products for different regions.

Ceat operates two manufacturing facilities at Mumbai and Nashik and employs nearly 4,800 people.