Mumbai, India – Mahansaria Tyres Private Ltd (MTPL) is to buy a majority stake in the Dutch off-highway tire specialist European Agriculture Tyre Distributor (EATD), MTPL has announced.
The acquisition is linked to the Mumbai-based company’s construction of the 127-acre manufacturing tire facility, which is due for completion by mid-2020, according to its statement supplied 15 Nov.
Owned by the Mahansaria family – father, Ashok Mahansaria and son, Yogesh Mahansaria – MTPL is setting up a €90-million greenfield off-highway tire manufacturing plant in Gujarat India.
The plant is being built in Panoli n the south west Gujarat, about 320km north of Mumbai, a spokesman said in a written reply to ERJ. The company, he added, plans announce its branding strategy early in the New Year and will target sales in the Americas, as well as in Europe.
The purchase of a controlling stake in EATD is “the first step” in building its distribution network in Europe, the Indian company stated.
EATD, it said, would distribute MTPL tires in Germany, Austria, Switzerland, Belgium, Netherlands, Czech Republic, Slovakia and Poland.
The Dutch business will also continue distributing Tianli tires, manufactured by Tianjin, China-based manufacturer of agriculture, forestry and earthmover tires, Tianli.
Terms of the agreement have not been disclosed.
The Mahansaria family has over 30 years of experience in the tire industry: building two major off-highway tire businesses: Alliance Tire Group and prior to that Balkrishna Industries Ltd (BKT).
Yogesh Mahansaria is the former majority owner and CEO of Alliance Tire Group and prior to that an executive with BKT Tyres Ltd. He orchestrated the purchase of Israel's Alliance Tyres in 2007 and then sold majority interest of the expanded enterprises in 2013 to the global investment firm KKR & Co. L.P.
Yokohama Rubber Co. Ltd. acquired ATG in 2016 from KKR, the Mahansarias and other minority shareholders.
“We have known Wolfgang Luettschwager (founder of EATD) for over 20 years and have highest regards for his deep knowledge and experience in the European off-highway tires market,” said Yogesh Mahansaria.
EATD was set up six years ago and the new combination of Tianli and MTPL is expected to open “new opportunities in a highly competitive market”, he concluded.
The Mahansarias, through their investment vehicle, Yogesh Agencies & Investments Pvt. Ltd., also are involved in a joint venture project with Trelleborg Wheel Systems, which is in the process of setting up a venture in India to make the company's Mitas-brand motorcycle and scooter tires.
Trelleborg will own 24% of the venture, SYAM Trelleborg Tires L.L.P., which is tasked with setting up a plant in western India with production projected to start by year-end 2020. Financial details were not disclosed.