Trelleborg, Sweden – Trelleborg Wheel Systems business has entered into a joint venture agreement with Indian Yogesh Agencies & Investment Private Ltd to build a production facility for the manufacture of tires for two-wheeled motor vehicles in India.
Owned by the entrepreneur family Mahansaria, the Indian investment firm was the founder of Alliance Tyre Group, which was sold to Japan’s Yokohama in 2016. Additionally, according to its website, the company "co-promoted" off-highway tire maker Balkrishna Industries Ltd, which was founded in 1987.
Trelleborg announced 5 Dec that the joint venture will establish a production site in in Western India, with tire deliveries expected to start at the end of 2020. No further details on the capacity or financial size of the investment were given.
Trelleborg will own 24% of the joint venture and will continue to be responsible for the development and sales of Mitas tires 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 tires for two-wheeled motorcycles.
The investment, said Trelleborg, is part of the Swedish group’s strategy to strengthen its positions in attractive market segments.
Trelleborg’s existing manufacture of tires for two-wheeled motor vehicles is concentrated in Europe. Products include tires for selected niches, such as enduro and motocross, as well as scooters, mopeds and motorcycles.
The planned investment, the company said, will enable Trelleborg to continue to grow in Europe as well as in regions such as North America and selected parts of Asia.
“The investment enables us to continue to take our motorcycle tire operations to a new level,” said Paolo Pompei, president of the Trelleborg Wheel Systems business area.
According to Pompei, Trelleborg already holds a strong position in the niche segment but the investment will increase the company’s production capacity and strengthen its offering more globally.