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Associated CEAT (Pvt) Ltd, the Sri Lanka - India joint venture tyre manufacturer, has commenced export of locally manufactured commercial tyres to India, under concessionary duties resulting from the Indo Lanka Free Trade Agreement (FTA).

The process began earlier this month with the first consignment of six tons of truck and light truck tyres manufactured for Indian markets at the Associated CEAT factory in Kalutara.

Rohan Fernando, Executive Director in charge of exports of the joint venture company, said the viability of exporting to India under the FTA is expected to be a major contributor to capacity utilisation of not only Associated CEAT but also of CEAT Kelani International Tyres (Pvt.) Ltd., (CKITL) and will provide an impetus to growth for both companies. This is a landmark in the history of Associated CEAT, a pioneer Indo Lanka manufacturing venture now in its 9th year. "We anticipate a happy situation where 20 per cent of our total production would be exported by 2003," he said.

The first consignment of exports under the FTA comprised 150 tyres in two sizes, 8.25 - 20 Fleet Master, and 9.00 - 20 XL # 1, a new product yet to be launched in Sri Lanka. The tyres conform to CEAT's international standards, and the local quality management process is ISO 9002 certified.

"We can now compete with tyres made in India not only in terms of quality but also on price," Associated CEAT's General Manager Sales and Marketing, Ashwin Padukone said. "Moreover, the opening of the northern province has resulted in a rapid increase in local road transportation needs which will boost domestic demand for our tyres," he said.

Both Associated CEAT (Pvt) Ltd., (ACPL) and CEAT Kelani International Tyres (Pvt) Ltd., (CKITL) have exported significant volumes of locally manufactured tyres in the past, to countries in the SAARC region as well as to Dubai, Singapore, USA, Philippines, Uganda and Nigeria.

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