Continental to acquire Modi Rubber’s tyre subsidiary | business | Hindustan Times
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Continental to acquire Modi Rubber’s tyre subsidiary

The world’s fourth-largest tyre maker Continental Group on Monday signed an agreement with Ghaziabad-based Modi Rubber Ltd to buy its subsidiary Modi Tyres Company Ltd (MTCL).

business Updated: Apr 18, 2011 22:31 IST
HT Correspondent

The world’s fourth-largest tyre maker Continental Group on Monday signed an agreement with Ghaziabad-based Modi Rubber Ltd to buy its subsidiary Modi Tyres Company Ltd (MTCL).

Financial details of the deal, which would be finalised in the next four to eight weeks, were not disclosed. However, the acquisition of the struggling tyre-making subsidiary of Modi brothers signifies that Germany-based Continental is strengthening its India presence.

“After completion of the transaction, Modi Tyres Company will become a fully-owned subsidiary of Continental Corporation. The company will focus on local production and distribution of bias and radial truck/bus tyres as well as radial passenger car tyres for the Indian market,” said a statement issued by Continental.

Promoted by brothers BK and VK Modi, Modi Rubber Ltd (MRL), with an annual turnover of Rs18 crore and market capitalisation of Rs188 crore, has a tyre plant in Meerut, UP.

MRL’s share price shot up 10% to Rs75.4 on the Bombay Stock Exchange on Monday following the news.

Continental has been present in India since 1974 through a collaboration with Modi Tyres. According to the contract revived in 2009, Modies had to produce over a million bias tyres for trucks and buses under the Continental brand.

strengthening presence

Promoted by brothers BK and VK Modi, Modi Rubber Ltd (MRL), with an annual turnover of R18 cr and a market cap of Rs188 crore, has a tyre plant in Meerut

The 26-billion-euro Continental group has been present in India since 1974 through a collaboration with Modi Tyres