Apollo concludes acquisition of Dunlop International

Guragaon, Haryana - Apollo Tyres Ltd has formally concluded the process of acquiring Dunlop Tyres International (Pyt) Ltd in a Rs 290 crore (€52.3 million) all-cash deal. Apollo's Board of Directors had approved this acquisition on January 31, 2006, at a board meeting in

Mumbai. All regulatory approvals in India and South Africa alongside the transfer of shares have

already been completed. Dunlop South Africa will now become a part of the Apollo Tyres Group.

Dunlop South Africa is headquartered in Durban and owns subsidiaries in Zimbabwe and the United Kingdom. Through this acquisition, Apollo's base of manufacturing units enlarges to include facilities in Durban and Ladysmith in South Africa and in Bulawayo and Harare in Zimbabwe. This acquisition will lead to a distinct set of synergies for the Apollo Tyres Group in product profile, market access, R&D, manpower resources and the ability to optimise on cost, product and manufacturing facilities.

Speaking on the acquisition Onkar Kanwar, Chairman & Managing Director, Apollo Tyres Ltd, said: Dunlop marks the first of Apollo's global footprint, expanding the reach of our exports and enlarging our customer base. This is our springboard into the global arena. We will use the Dunlop distribution channels for our exports and to take the Apollo brand into Africa, even as we bring in brands made by Dunlop for our Indian customers. The two management teams are already working together to ensure a quick and effortless transition where the best products and services can be delivered to all customers and distributors at the earliest.”

Apollo said Dunlop South Africa will continue to be managed by the existing management team in South Africa and Zimbabwe. Chief Executive Officer of Dunlop South Africa, Mike Hankinson said: This acquisition establishes the first truly global link between India and South

Africa, with all the opportunities that both countries have to offer to each other. Added to that the cultural similarities that our two companies share is going to ensure a seamless integration resulting in greater business effectiveness.”