Kelani Tyres

Last updated
Kelani Tyres PLC
Type Public
CSE:  TYRE.N0000
ISIN LK0216N00008
Industry
FoundedOctober 4, 1990;32 years ago (1990-10-04)
Headquarters
Colombo
,
Sri Lanka
Key people
  • Chanaka De Silva (Chairman)
  • Rohan T. Fernando (Managing Director)
Brands CEAT
RevenueIncrease2.svg LKR314 million (2022)
Decrease2.svg LKR830 million (2022)
Decrease2.svg LKR830 million (2022)
Total assets Increase2.svg LKR6,668 million (2022)
Total equity Increase2.svg LKR6,409 million (2022)
Owners
  • Silverstock Limited (45.99%)
  • Bank of Ceylon/Ceybank Unit Trust (7.62%)
Subsidiaries
  • CEAT Kelani Holdings (Pvt) Ltd (50%, JV with Associated Ceat Holdings (Pvt) Ltd);
  • Executive Cars (Pvt) Ltd (100%)
Website www.ceatsrilanka.com
Footnotes /references
[1]

Kelani Tyres PLC is a tyre manufacturing company in Sri Lanka. Kelani Tyres originates in the privatisation of the government-owned Ceylon Tyre Corporation. Initially, privatisation is met with extreme employee industrial action for several months. Once the employee unrest dwindled, the company entered into an agreement with CEAT to set up a joint venture in 1993. In 1994, Kelani Tyres was listed on the Colombo Stock Exchange. In 2022, CEAT was amongst the 100 most valuable brands in Sri Lanka. The company moved to meet the total domestic demand for bus and truck tyres which would save LKR11 billion in foreign exchange through import substitution.

Contents

History

Sri Lankan Government's state-owned enterprise Ceylon Tyre Corporation was privatised as Kelani Tyres (Pvt) Ltd in 1992. [2] The privatisation yielded LKR400 million for the government, and 2,000 workers were working at the factory at the time. [3] Soon after the privatisation, the company plagued with industrial unrest for seven months. The new owners closed the factory, and prohibited workers from entering the premises. The labour issues were resolved and the factory commenced operations again. [4]

In 1993, Kelani Tyres signed a tripartite agreement with CEAT Ltd of India and Associated Motorways (AMW) which resulted in the creation of Associated CEAT (Pvt) Ltd. In January 1999, Kelani Tyres entered into an agreement with Associated Ceat Holding Company (ACHL), and CEAT to set up a second joint venture, to unite tyre manufacturing. CEAT held 60% of the stake in the ACHL while AMW and National Development Bank held 35% and 5% respectively. [5] The joint venture company exported tyres to Asian, African and South American countries. [6] The company was listed on the Colombo Stock Exchange in 1994. [1]

Operations

Brand Finance valued CEAT Kelani Holdings's CEAT brand to be LKR2,922 million in 2022. CEAT ranked 38th most valuable brand in Sri Lanka, up by ten positions from last year. [7] Fitch Ratings affirmed the credit rating of Kelani Tyre's subsidiary CEAT Kelani Holdings at AA+(lka) in July 2022. The credit outlook was adjudged to be stable. 80% market share in the bias tyre segment, 30% in radial tyre and the economic crisis-driven demand suppression were cited as justification for the rating. [8]

CEAT-Kelani Holdings commissioned a new plant in its Kelaniya manufacturing complex to increase motorcycle tyre manufacturing. The new company is named Asian Tyres Pvt Ltd. The company accounted for 17% of the market share in motorcycle tyres. [9] CEAT Kelani moved to supply the total domestic requirement of bus and truck tyres in 2015, in the wake of the government ramping up policies to develop domestic industries. It would save LKR11 billion in foreign exchange through import substitution. [10] In 2022, Kelani Tyres planned to invest LKR3.2 billion in increasing manufacturing capacity. Car and SUV tyre manufacturing capacity is planned to increase from 51,000 per month to 61,000 per month. Motorcycle tyre manufacturing capacity will be also increased from 41,000 per month to 57,000 per month. [11]

See also

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References

  1. 1 2 "Annual Report 2021/22" (PDF). cse.lk. Kelani Tyres PLC. Retrieved 23 December 2022.
  2. ↑ White, H.; Kelegama, S. (1994). "Fiscal implications of privatisation in developing countries: the Sri Lankan experience". International Institute of Social Studies . Retrieved 24 December 2022.
  3. ↑ Ramanadham, V. V. (7 February 2002). Privatization and After: Monitoring and Regulation. Routledge. p. 73. ISBN   978-1-134-83416-7 . Retrieved 24 December 2022.
  4. ↑ Foreign Labor Trends. Bureau of International Labor Affairs. 1994. Retrieved 24 December 2022.
  5. ↑ Srinivasan, T. N. (2002). Trade, finance, and investment in South Asia. New Delhi: Social Science Press. p. 389. ISBN   978-8-18735-805-3 . Retrieved 24 December 2022.
  6. ↑ Mukherji, Indra Nath; Iyengar, Kavita (1 September 2013). Deepening Economic Cooperation between India and Sri Lanka. Metro Manila: Asian Development Bank. ISBN   978-92-9254-170-5 . Retrieved 24 December 2022.
  7. ↑ "Sri Lanka 100 2022" (PDF). brandirectory.com. Brand Finance. 2022. p. 15. Retrieved 24 December 2022.
  8. ↑ "Fitch Affirms Sri Lanka's Ceat Kelani at 'AA+(lka)'; Outlook Stable". fitchratings.com. Fitch Ratings. 5 July 2022. Retrieved 24 December 2022.
  9. ↑ "CEAT Kelani invests in new advanced motorcycle tyre plant in Sri Lanka". adaderana.lk. Ada Derana. 19 May 2015. Retrieved 24 December 2022.
  10. ↑ "CEAT to save the country Rs 11 billion in forex". The Island . Upali Newspapers. 21 August 2020. Retrieved 24 December 2022.
  11. ↑ Ladduwahetty, Ravi (2 February 2022). "Kelani Tyres to invest Rs 3.2 bn to expand radial tyre capacity". Daily News . Associated Newspapers of Ceylon Limited . Retrieved 24 December 2022.
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