Apollo Tyres Considers More EU Acquisitions
Apollo Tyres, is reportedly planning acquisitions in Europe and South East Asia in the current financial year. “We will be interested in acquiring companies that will synergise the group’s expertise in the areas of manufacturing, overseas markets and new technology,” Neeraj Kanwar, joint managing director, Apollo Tyres, told India Business Line.
Acquisition will also be a strategy to increase the proportion of radialisation in the company’s truck and passenger car tyres. In January, the company acquired South Africa-based tyre manufacturer Dunlop Tyres international, a radial tyre manufacturer for roughly £36 million, 50 million euros.
As a result Apollo gained control of Dunlop’s plants in South Africa and Zimbabwe and some marketing access to markets in Europe, West Asia and Africa. In Europe representation is made by the Dunlop Africa Marketing (UK) Ltd subsidiary. According to India’s Business Line newspaper, Apollo Tyres will consider raising funds for acquisition and business operations through debt and the public issue of equity shares.
The Dunlop acquisition made Apollo the largest tyre manufacturer in the country, with a capacity of 900 tonnes, said company officials. The second largest tyre maker in the country, MRF is said to have a total capacity of around 800 tonnes.