Modi acquisition underlines Indian market commitment, says Conti
Commenting on Continental’s 18.5 million euro purchase of Modi Tyres Company Limited (MTCL), Nikolai Setzer, head of the German manufacturer’s Passenger and Light Truck Tire division, said Conti’s acquisition of a 100 per cent shareholding “underlines our commitment to the Indian market.” Both parties have agreed to keep commercial details of the transaction confidential, however the key points are that MTCL has now become a fully-owned Continental Corporation subsidiary and will be renamed Continental Tyres India Limited. The new entity will focus on the local production and distribution of cross-ply and radial truck and bus tyres as well as radial passenger car tyres for 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,” Setzer continued. “India’s truck tyre market is of outstanding relevance worldwide and exceeds with a size of 18 million tyres per year already the Western and Central European market.” Conti also notes that growth rates in the passenger car tyre market – an area of particular strength and expertise for the German manufacturer – are “substantial” in both the original equipment and replacement segments. “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 tyre replacement business and original equipment manufacturers in India.”
Following the deal’s closure, the Indian company’s former CEO, Alok Modi, paid tribute to the MTCL workforce and expressed his confidence in the value they will bring the new parent company: “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.”
Continental Tyres India Ltd will have its registered office in Delhi and manufacturing facilities in Modipuram and Partapur. Currently, an integration team is working jointly with the new Conti employees, backed up by Continental’s full resources, to achieve an optimal start for Continental Tyres India.