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Continental Acquires Modi Tire Business
- International Automotive Supplier Continental acquires 100% stake in Modi Tyres Company Limited
- Strengthened presence in India with local production and distribution of bias and radial truck & bus tires and radial passenger car tires
Hanover/Delhi, July 18, 2011. Continental, one of the leading international automotive suppliers and the world's fourth largest tire manufacturer, has acquired 100% shareholding in Modi Tyres Company Limited (MTCL), a subsidiary of Modi Rubber LTD. Further to the announcement in April, Continental confirms that it has now received the necessary regulatory clearances and has completed the acquisition. The purchase price consideration for 100% of the shares of MTCL is approx. 18.5 million Euros. Both parties have agreed to keep other commercial details of the transaction confidential.
MTCL has now become a fully owned subsidiary of Continental Corporation and will be renamed as Continental Tyres India Limited. The new entity will focus on local production and distribution of bias and radial truck and bus tires as well as radial passenger car tires for the Indian market.
Commenting on the occasion, 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 tires and truck tires in growing markets in Asia." For the commercial vehicle tire business, for which Setzer will be responsible within Continental as of August 1st as well, the move is an important signal: "India's truck tire market is of outstanding relevance worldwide and exceeds with a size of 18 million tires per year already the Western and Central European market." As well the PLT market shows substantial growth rates, both in replacement and original equipment business, where Continental has a strong position and long-standing expertise. "Thus, we are confident that our premium technology combined with the new local presence will make Continental a reliable and strategic partner both for the tire replacement business and original equipment manufacturers in India", Setzer said.
"The highly motivated employees in Modipuram, Partapur and Delhi are looking forward to contributing their profound knowhow of the Indian market as well as the company's local distribution structure to the success of the internationally renowned corporation of Continental in an increasingly competitive market environment," Alok Modi, former CEO of MTCL, pointed out at the closing of the deal.
Continental Tyres India Ltd will have its registered office in Delhi with manufacturing facilities both in Modipuram and Partapur. Currently, an integration team works jointly with the new employees on achieving an optimal start for Continental Tyres India with the full set of resources now available from Continental. On August 24th, prior to the first town hall meeting with the entire team in Modipuram, Executive Board member Nikolai Setzer together with the Head of Continental India and the management of Continental Tyres India will invite to a press meet in Delhi to share more detailed information.
Press Conference Date: August 24th, 2011 Time: 11:30 am (local time)
Venue: The Taj Mahal Hotel, New Delhi
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