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Home arrow Aerospace arrow Germany's Continental to Acquire Modi Tire Business
Germany's Continental to Acquire Modi Tire Business Print E-mail
Written by Anand   
Tuesday, 19 April 2011
New Delhi: Automotive supplier and the world’s fourth largest tire manufacturer Continental has signed an agreement with Modi Rubber LTD. (MRL), for the acquisition of a 100% shareholding in Modi Tyres Company Limited (MTCL), a subsidiary of MRL.

After completion of the transaction, MTCL will become a fully owned subsidiary of Continental Corporation. The company will focus on local production and distribution of bias and radial truck/bus tires as well as radial passenger car tires for the Indian market.

The completion of the transaction still depends on the fulfillment of several conditions.

Modi Rubber Limited manufactures and sells automobile tires, tubes, and flaps primarily in India. It also manufactures tires on a contract basis. The company was founded in 1971 and is headquartered in New Delhi, India.

Background.

Modi Tyres Company Pvt Limited ( MTCPL), a wholly owned subsidiary of Modi Rubber Limited had signed a Technical cooperation agreement with Continental. Under this agreement Continental branded Truck & Bus Cross ply tyres was produced in MTCPL's Tyre plant at Modipuram Meerut, U.P. India which has annual capacity of over 1 Million Bias Truck & Bus Tyres and Tubes.

Test tyres were produced at the plant in Modipuram. These tyres were tested in the well equipped test facilities of the company and were also sent for testing to the Continental facilities in Malaysia and South Africa. The tyres passed all their tests satisfactorily. Continental released the tyres for production at the MTCPL facilities, to be marketed and sold under the global brand.

This development underlines Continental’s commitment to the Indian market and is part of the company’s strategy to invest in growing markets in Asia for its core businesses.

 
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