Continental Acquires 100% Stake In Modi Tyres

Published: Tuesday, July 19, 2011, 12:42 [IST]

Continental, a Germany based international auto parts supplier has purchased a 100 per cent stake in Modi Tyres Company Limited (MTCL). Continental in its statement has said it had obtained all the necessary regulatory approvals to complete the purchase of the Modi Rubber Group subsidiary. The Modi Tyres deal is being valued at 18.5 million Euros.

Modi Tyres is now a fully owned subsidiary of the Continental Corporation. The company will be renamed as Continental Tyres India Limited. This new company will focus on local production of bias and radial truck tyres and bus tyres as well as radial passenger car tyres.

Nikolai Setzer, member of Continental"s Executive Board and head of the Passenger and Light Truck Tire (PLT) Division said: “The acquisition of MTCL underlines our commitment to the Indian market. It is part of our strategy to invest into local production of both passenger car tyres and truck tyres in growing markets in Asia."

Continental's purchase of Modi Tyres will mean the European giant will bring in its experience of building top quality tyres to India. With the arrivalof several premium car brands in India there is now a market for performance oriented tyres and the Continental Tyres India Limited can cater to this emerging market segment.

Continental Tyres India Ltd will have its registered office in Delhi with manufacturing facilities both in Modipuram and Partapur. Continental"s Commercial Vehicle Tires division is one of the world"s largest manufacturers of truck, bus and industrial tires with a workforce of 7,200 and a turnover of over 1.4 billion Euros.

Article Published On: Tuesday, July 19, 2011, 12:42 [IST]

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