CEAT Limited has completed its acquisition of Michelin Group’s CAMSO Construction Compact Line Business, marking a significant expansion into the global off-highway tire market. The transaction includes two Sri Lankan manufacturing facilities and permanent ownership rights to the CAMSO brand.
The acquisition encompasses Michelin’s Midigama plant and Casting Product plant in Kotugoda, Sri Lanka, along with the compact construction equipment business operations. CEAT will gain full global ownership of the CAMSO brand following a three-year licensing transition period.
The deal provides CEAT with immediate access to over 40 global original equipment manufacturers (OEMs) and premium international distributors, leveraging CAMSO’s established presence in European and North American markets. Michelin will exit the compact line bias tires and construction tracks segments as part of the transaction.
CEAT has committed to a $171 million investment in Sri Lanka, securing employment for 1,483 workers and reinforcing the country’s position as a manufacturing hub for off-highway tire products. The investment represents one of the largest recent foreign direct investments in Sri Lanka’s industrial sector.
“The integration of compact construction equipment business and the acquisition of the CAMSO brand is a pivotal step in advancing CEAT’s long-term vision of becoming a significant player in Off Highway mobility,” said Arnab Banerjee, Managing Director and CEO of CEAT Limited.
The acquisition aligns with CEAT’s decade-long strategy to expand its off-highway tire portfolio beyond its established agricultural tire business. The company aims to capitalize on the high-margin off-highway segment by combining its existing capabilities with CAMSO’s specialized expertise in compact construction equipment tracks and tires.
H.E. Santosh Jha, India’s High Commissioner to Sri Lanka, welcomed the investment as part of strengthening economic ties between the two countries. India has emerged as the largest source of foreign direct investment in Sri Lanka in recent years.
CEAT Specialty Chief Executive Amit Tolani emphasized the company’s focus on ensuring smooth operational transition while maintaining customer satisfaction and strengthening Sri Lankan operations.
The acquisition positions CEAT to compete more effectively in global off-highway tire markets, with enhanced manufacturing capabilities and an expanded international distribution network through the CAMSO brand platform.