RENDEZVOUS
CEAT India, a leading tyre brand known for its superior quality and innovative solutions, has made significant strides in the Indian market. Now, CEAT is all set to expand its footprint in Nepal, a move that reinforces its position as a key player in the tyre industry. To mark this milestone, Satya Rao, vice-president (IB) of CEAT India, recently visited Nepal for the grand opening of the CEAT Shoppe showroom in Balkumari. In an exclusive interview with The Himalayan Times, Rao shared his insights into CEAT's journey, the significance of company's expansion in Nepal, and many more. Excerpts:
How does the company plan to ensure a seamless supply chain and distribution network across the country?
Currently, we have two CEAT distributors assigned special duty and more 400 dealers across the country catered to by the distributors. And progress in Nepal during this time frame has been exceptional, except last year. We are planning to expand our distribution network and supply chain to every nook and corner
What factors led to the decision of expanding CEAT's presence in Nepal? What potential do you see for CEAT products in the Nepali market?
We have been present in Nepali tyre market for 15 years. However, despite a huge demand in Nepal, due to external factors like depleting foreign reserves currency, the government-imposed import restrictions, quickening inflation, skyrocketing fuel prices, the consumers were forced to curtail their purchases.
Consequently, not only CEAT, but all the companies suffered last year.
However, our distribution remained intact as the distributors dida great job. And we are seeing good growth this year as things have started stabilising. We have witnessed the demand gradually picking up and expect growth of more than 20 per cent this year.
Were there any strategic factors that influenced the selection of the location for the CEAT Shoppe showroom?
We wanted to choose a prime location as the Kathmandu valley holds more than 40 per cent share of passenger car radial (PCR) tyres potential, which is the largest potential market in Nepal. The purpose of establishing a showroom here is for the visibility. CEAT Shoppe is our flagship store and we are trying to provide one-of-a-kind experience for visiting customers, who will be able to browse through a variety of products of CEAT and receive all retail services under one roof.Owing to continuous engagement with the customers due its location, I reckon the volume of business will also increase.
CEAT has a reputation for its commitment to sustainable practices. How does the company integrate sustainability into its manufacturing processes and product development?
When it comes to our manufacturing plants, we've been practicing various things in terms of sustainability by reducing the carbon footprint. For example, we're using alternative raw materials and reducing carbon black usage. Also, our manufacturing plants are using solar energy and trying to reduce the dependency on fossil fuels. These are some of the steps that CEAT is taking to reduce its carbon footprint.
Finally, could you share your thoughts on overall business environment in Nepal?
I don't really see any roadblocks going forward, unless something happens due to external factors. The kind of opportunities we see in Nepal are similar to that in India. The products we are offering in the Nepali market are similar to those being sent in the European market. So I see greater opportunities for CEAT Tyres in Nepal.
A version of this article appears in the print on June 1, 2023, of The Himalayan Times.
