CEAT to hike tyre prices by 4-6% this quarter amid increased raw material costs
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- ✓CEAT plans to hike tyre prices by 4-6% this quarter to offset rising raw material costs.
- ✓Managing Director Arnab Banerjee said, "The price increase has been massive, though inadequate." The company saw profits fall to ₹112 crore in the July-September quarter as raw material prices rose by 23-24% since April.
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- BUSINESS
- Reported By
- Business Line
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Tyre maker CEAT Ltd plans to raise prices across categories by 4-6 per cent this quarter to offset higher raw material costs, its Managing Director and CEO Arnab Banerjee said on Wednesday.
Although the company has raised prices in the last two quarters, it could not fully offset inflation in major raw materials such as rubber and petroleum-based items. This was reflected in its second-quarter earnings, where profit plunged nearly 40 per cent, and margins fell into single digits.
"The price increase has been massive, though inadequate. We still have to cover; we still have to increase prices in the replacement category. OEM pricing will come in through indexing. And international business pricing also has to increase," Banerjee told PTI.
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