Trelleborg invests in India two-wheel tyre production JV
Trelleborg Wheel Systems is investing in a two-wheel tyre factory in India. According to the company, the investment forms part of Trelleborg’s strategy to “strengthen its positions in attractive market segments”. Currently Trelleborg’s mostly makes two-wheel tyres in Europe. Products include tyres for selected niches, such as enduro and motocross, as well as scooters,
mopeds and motorcycles.
The investment takes the form of a joint venture whereby Trelleborg and Yogesh Agencies & Investments Private Limited, owned by the entrepreneur family Mahansaria, have signed an agreement to form a joint venture to manufacture tyres for two-wheeled motor vehicles. The members of the Mahansaria family are highly reputed entrepreneurs and business leaders in the tyre industry and known by Trelleborg for many years.
The joint venture will establish a production site in in Western India. Tyre deliveries are expected to start at the end of 2020. Trelleborg will own 24 per cent of the joint venture and will continue to be responsible for the development and sales of Mitas tyres as well as retaining ownership of the Mitas brand. In India and the other SAARC countries, except Sri Lanka, the Mahansaria family will be responsible for the sales of Mitas tyres for two-wheeled motorcycles.
“The investment enables us to continue to take our motorcycle tyre operations to a new level. We believe this particular expansion is best accomplished together with a partner and we are very happy that we can do this with the respected Mahansaria family. Trelleborg already holds a strong position in this niche segment but the investment will increase our production capacity, strengthen our offering and enable us to act more globally,” says Paolo Pompei, President of the Trelleborg
Wheel Systems business area.