Kelani Tyres
{{Short description|Tyre manufacturing company in Sri Lanka}}
{{Infobox company
| name = Kelani Tyres PLC
| logo = Kelani Tyres logo.jpg
| logo_caption = Logo of Kelani Tyres PLC
| type = Public
| traded_as = {{Colombo Stock Exchange|TYRE.N0000}}
| ISIN = LK0216N00008
| industry = {{Unbulleted list|Tyre and Tubes}}
| founded = {{Start date and age|1990|10|4}}
| hq_location_city = Colombo
| hq_location_country = Sri Lanka
| key_people = {{Unbulleted list|Chanaka De Silva (Chairman)|Rohan T. Fernando (Managing Director)}}
| brands = CEAT
| revenue = {{increase}} LKR314 million
| revenue_year = 2022
| operating_income = {{decrease}} LKR830 million
| income_year = 2022
| net_income = {{decrease}} LKR830 million
| net_income_year = 2022
| assets = {{increase}} LKR6,668 million
| assets_year = 2022
| equity = {{increase}} LKR6,409 million
| equity_year = 2022
| owners = {{Unbulleted list|Silverstock Limited (45.99%)|Bank of Ceylon/Ceybank Unit Trust (7.62%)}}
| subsid = {{Unbulleted list|CEAT Kelani Holdings (Pvt) Ltd (50%, JV with Associated Ceat Holdings (Pvt) Ltd);|Executive Cars
(Pvt) Ltd (100%)}}
| website = {{URL|https://kelanityres.lk/}}
}}
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.
History
Sri Lankan Government's state-owned enterprise Ceylon Tyre Corporation was privatised as Kelani Tyres (Pvt) Ltd in 1992.{{cite web |last1=White |first1=H. |last2=Kelegama |first2=S. |title=Fiscal implications of privatisation in developing countries: the Sri Lankan experience |url=https://econpapers.repec.org/paper/emseuriss/18879.htm |publisher=International Institute of Social Studies |access-date=24 December 2022 |date=1994}} The privatisation yielded LKR400 million for the government, and 2,000 workers were working at the factory at the time.{{cite book |last1=Ramanadham |first1=V. V. |title=Privatization and After: Monitoring and Regulation |date=7 February 2002 |publisher=Routledge |isbn=978-1-134-83416-7 |page=73 |url=https://books.google.com/books?id=eAqIAgAAQBAJ |access-date=24 December 2022 |language=en}} 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.{{cite book |title=Foreign Labor Trends |date=1994 |publisher=Bureau of International Labor Affairs |url=https://books.google.com/books?id=YVHKDv7xW0AC |access-date=24 December 2022 |language=en}}
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.{{cite book |last1=Srinivasan |first1=T. N. |title=Trade, finance, and investment in South Asia |date=2002 |publisher=Social Science Press |location=New Delhi |isbn=978-8-18735-805-3 |page=389 |url=https://books.google.com/books?id=JK49YUikMhgC |access-date=24 December 2022}} The joint venture company exported tyres to Asian, African and South American countries.{{cite book |last1=Mukherji |first1=Indra Nath |last2=Iyengar |first2=Kavita |title=Deepening Economic Cooperation between India and Sri Lanka |date=1 September 2013 |publisher=Asian Development Bank |location=Metro Manila |isbn=978-92-9254-170-5 |url=https://books.google.com/books?id=wD0JBgAAQBAJ |access-date=24 December 2022 |language=en}} The company was listed on the Colombo Stock Exchange in 1994.
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.{{cite web |title=Sri Lanka 100 2022 |url=https://brandirectory.com/download-report/brand-finance-sri-lanka-100-2022-full-report.pdf |website=brandirectory.com |publisher=Brand Finance |access-date=24 December 2022 |page=15 |date=2022}} 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.{{cite web |title=Fitch Affirms Sri Lanka's Ceat Kelani at 'AA+(lka)'; Outlook Stable |url=https://www.fitchratings.com/research/corporate-finance/fitch-affirms-sri-lanka-ceat-kelani-at-aa-lka-outlook-stable-05-07-2022 |website=fitchratings.com |publisher=Fitch Ratings |access-date=24 December 2022 |date=5 July 2022}}
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.{{cite news |title=CEAT Kelani invests in new advanced motorcycle tyre plant in Sri Lanka |url=http://bizenglish.adaderana.lk/ceat-kelani-invests-in-new-advanced-motorcycle-tyre-plant-in-sri-lanka/ |access-date=24 December 2022 |work=adaderana.lk |publisher=Ada Derana |date=19 May 2015}} 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.{{cite news |title=CEAT to save the country Rs 11 billion in forex |url=https://island.lk/ceat-to-save-the-country-rs-11-billion-in-forex/ |access-date=24 December 2022 |work=The Island |publisher=Upali Newspapers |date=21 August 2020}} 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.{{cite news |last1=Ladduwahetty |first1=Ravi |title=Kelani Tyres to invest Rs 3.2 bn to expand radial tyre capacity |url=https://www.dailynews.lk/2022/02/02/business/271604/kelani-tyres-invest-rs-32-bn-expand-radial-tyre-capacity |access-date=24 December 2022 |work=Daily News |publisher=Associated Newspapers of Ceylon Limited |date=2 February 2022}}
See also
References
{{Reflist}}
External links
- [https://www.ceatsrilanka.com/ Official website]
{{All Share Price Index}}
Category:1991 establishments in Sri Lanka
Category:Manufacturing companies established in 1991
Category:Companies listed on the Colombo Stock Exchange