{"url":"https://newsforagent.com/news/2026-10-14/ceat-loan-equity-camso-migration","markdown_url":"https://newsforagent.com/news/2026-10-14/ceat-loan-equity-camso-migration.md","title":"CEAT Converts $24.5 Million Loan to Equity for Sri Lankan Unit","headline":"CEAT Converts $24.5 Million Loan to Equity as Camso Migration Reaches 85%","description":"CEAT converted a $24.5 million inter-company loan into equity for its Sri Lankan subsidiary as Camso customer migration reached 85% by end-September.","section":"Funding","published_at":"2026-10-14T20:07:43+00:00","modified_at":"2026-10-14T20:07:43+00:00","author":"News Desk","key_takeaways":["CEAT converted a $24.5 million inter-company loan into equity for CEAT OHT Lanka (Private) Limited.","Camso direct customer migration reached 84% to 85% by the end of September, with the remaining 15% scheduled to transition by December.","CEAT is constructing upstream compound processing capability in Sri Lanka, targeting Q1 FY28 for manufacturing integration."],"companies":[{"name":"Ceat Tyres Limited","is_primary":true,"profile_url":"https://akta.pro/company-profiles/0004tdd/ceat-tyres-limited","website":"http://www.ceat.com"},{"name":"Compagnie Générale des Établissements Michelin SCA","is_primary":false,"profile_url":"https://akta.pro/company-profiles/0000aqt/compagnie-generale-des-etablissements-michelin-sca","website":"http://www.michelin.com"}],"source":{"publisher":"Autocar Professional","title":"CEAT Converts $24.5M Loan to Equity as Camso Migration Hits 85% | Autocar Professional","url":"https://www.autocarpro.in/news/ceat-converts-$245-million-loan-to-equity-as-camso-off-highway-integration-reaches-85-percent-customer-migration-threshold-135247"},"other_sources":[],"tags":["Funding","Ceat Tyres Limited","Compagnie Générale des Établissements Michelin SCA"],"body_markdown":"CEAT has converted a $24.5 million inter-company loan into equity for its Sri Lankan subsidiary, CEAT OHT Lanka (Private) Limited, following its $225 million acquisition of Michelin's Camso off-highway business. [Autocar Professional](https://www.autocarpro.in/news/ceat-converts-$245-million-loan-to-equity-as-camso-off-highway-integration-reaches-85-percent-customer-migration-threshold-135247) reported the restructuring, which coincides with CEAT reaching an 84% to 85% direct customer migration milestone by the end of September.\n\n## CEAT's Camso Integration and Sri Lankan Restructuring\n\nThe balance sheet adjustment absorbs upfront distribution costs at overseas marketing arms in Europe and the U.S. ahead of full revenue realization. Integrating the global off-highway construction equipment tyre and track business involves a two-phase transition covering front-end sales networks and back-end manufacturing logistics. Michelin previously provided legacy customer support, and CEAT has assumed direct management of the vast majority of client accounts, with the remaining 15% scheduled to transition by December.\n\nCEAT Chief Financial Officer Kumar Subbiah said marketing subsidiaries in Europe and North America incurred short-term operational expenses after establishing office infrastructure and recruiting sales teams two months prior to revenue migration. \"The entire loss from the subsidiary companies is largely attributable to the Camso business,\" Subbiah stated. \"There is a gap between the time that revenue has started generating versus the infrastructure which was kept ready two months before we started migrating.\"\n\nCEAT is currently constructing upstream compound processing capability in Sri Lanka to achieve complete manufacturing independence. \"We are in the process of setting up that upstream... by quarter one of next year, of manufacturing will get integrated,\" Subbiah noted, pointing to Q1 FY28 as the target to eliminate reliance on external compound sourcing.\n\n## CEAT's Funding and Expansion Records\n\nAccording to akta.pro [company records](https://akta.pro/company-data), CEAT has two funding rounds on record. A December 2025 post-IPO debt round of $27.8 million and a March 2017 post-IPO equity round of $27.5 million led by Peak XV Partners. The same records show CEAT crossed the Rs 15,000 crore annual revenue milestone for FY26, with an annual tyre production capacity of more than 41 million units across all segments and a global market presence in over 110 countries.\n\n## Earlier CEAT Developments\n\nIn October 2026, Autocar Professional reported that CEAT is evaluating a 7-8% price increase to offset rising input costs, as its consolidated EBITDA margin fell to 9.50% from 10.50% despite 26% revenue growth. CNBC TV18 reported in October 2026 that CEAT's net profit fell nearly 40% to ₹112 crore due to elevated raw material costs. In September 2026, NDTV Profit reported that CEAT CFO Kumar Subbaiah said natural rubber prices in India hit a 20-year high, prompting price hikes across segments, with the company having raised prices by 5.5% in Q1, 5.6% in July, and 2% in August, and a further 1.5-2% hike planned in September.\n\n## CEAT's Upcoming Manufacturing Timeline\n\nCEAT is targeting Q1 FY28 for the integration of upstream compound processing in Sri Lanka, which would complete manufacturing independence for the off-highway business.\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}