CEAT Ltd to acquire global rights of the brand CEAT from Pirelli & C. SpA

29 Nov 2010

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Mumbai: Mumbai-headquartred CEAT Ltd, the flagship company of the Rs17,000-crore RPG Group, today said that it is acquiring the ''CEAT'' Brand from Pirelli & C. SpA for 9 million Euro (Rs 55 crore).

Pirelli, which owns the global CEAT Trademark has licenced the rights to the brand in 9 South Asian countries -  India, Sri Lanka, Bangladesh, Myanmar, Pakistan, Bhutan, Nepal, Afghanistan and Vietnam - to CEAT Ltd.

The Mumbai tyre maker's acquisition of the CEAT branding will enable it to export radial and cross-ply tyres to the whole world.  CEAT currently exports its tyres to Europe and South America in the ''Altura'' brand.  It will now be able to export in the CEAT brand. It will also allow the company to outsource tyres from any country under the CEAT brand.

After the acquisition of the trademark rights, all rights, title and interest in the CEAT brand will pass on to CEAT Ltd. wherever  Pirelli previously owned registrations for the CEAT  brand  and for  brand registration classes.

However, Pirelli will continue to hold exclusive license to use the CEAT brand in relation to both radial tyres in Europe, Latin America, Turkey and Mexico and cross-ply tyres in Latin America, Turkey and Mexico till 31 December 2011.

The deal also includes a non-exclusive license to Pirelli to use the CEAT brand in relation to  both  radial and cross-ply tyres  worldwide till 31 December 2012, excluding the nine countries where CEAT Ltd  currently  owns the brand completely.

"After December 31, 2012 CEAT Ltd. will be the exclusive owner of the CEAT brand in company business related territories all over the world," CEAT Ltd, said in a statement.

CEAT Ltd was established in 1958 and currently manufactures over 10 million tyres per year for heavy-duty trucks and buses, light commercial vehicles, earthmovers, forklifts, tractors, trailers, cars, motorcycles and scooters and auto-rickshaws.

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