The global automobile sector, whose fortunes are closely linked with
the performance of the global economy remained muted, having a domino
effect on demand in the tyre industry.
The situation in India was mixed with the auto sector showing moderate
demand, particularly in commercial and farm segments as well as
exports. Sectors like IT, pharma and financial services continued to
perform well. The well-laid macro foundations by the new government
together with the latest trends of revival in capital expenditure augur
well for a turnaround in the economy.
At CEAT, we continue with our strategic initiatives focussing on market
share expansion in profitable segments and creation of a strong brand
both locally and globally. We have also embarked on an expansion in our
capacities which should be completed during FY 2015-16. Our emphasis
has been on building tyres which are not just world-class but also the
safest on the road and the most environment-friendly. We are also
working on leveraging the benefits of digital technology particularly
in manufacturing, supply chain and other key business processes. The
volatility in commodity prices especially rubber remains a challenge.
On the people front, CEAT continues its efforts to create an exciting
workplace adopting pioneering practices. CEAT has also embarked on
several social initiatives including education, employability and
CEAT''s transformational journey has yielded success leading to
visible value creation for customers and shareholders alike.
Harsh Vardhan Goenka
Chairman, Non-Executive Director