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.