MUMBAI, India — An Indian start-up tire company with a familiar name, Mahansaria Tyres Pvt. Ltd. (MTPL), is buying into a Dutch distribution company, European Agricultural Tyre Distributors (EATD), to help it establish itself in Europe.
Mumbai-based MTPL — which is owned and promoted by the father-and-son team of Ashok and Yogesh Mahansaria — said recently it is building an off-highway tire-dedicated factory on a 127-acre site in Panoli, Gujarat Province, valued at $100 million.
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.
The Mahansarias said they expect to commission production at the plant in Gujarat by mid-2020. The company did not disclose any capacity or employment information.
Buying a controlling stake in EATD is the "first step" in building a distribution network in Europe, the Indian company stated.
Strijen, Netherlands-based EATD — set up six years ago to handle the importation and distribution of the Tianli brand of ag, forestry and earthmover tires — would distribute MTPL tires in, Austria, Belgium, Czech Republic, Germany, Netherlands, Poland, Slovakia and Switzerland.
EATD Founder Wolfgang Luettschwager said the "combination of Tianli and MTPL and the support of a strong and dedicated team opens up new opportunities in a highly competitive market."
Yogesh Mahansaria noted that he and his family have known Mr. Luettschwager for over 20 years and have "highest regards for his deep knowledge and experience in the European off-highway tire market."
MTPL has yet to disclose what brand name or names it will use for its tires.
The Dutch business will continue distributing Tianli tires, manufactured by Tianjin United Tire & Rubber International Co., Ltd (TUTRIC) of Tianjin, China.
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.