Acquire a modern, fully-certified tire manufacturer with strong distribution in India and export marketsThe Business
This Company manufactures cross-ply nylon tires and butyl tire tubes for trucks, buses, tractors, motorcycles and 3-wheelers. The Company has two state-of-the-art manufacturing units in Western India and currently employs around 170 employees and around 250 contract laborers. The Company has imported equipment from Europe to manufacture tubes according to international standards, and has a modern in-house tire testing center. The Company’s products are certified by DOT (USA), EMark (European Union), GSO (GCC countries), and SNI (Indonesia). The Company is the only mid-tier player to have such a facility in India. With current expansion plans, the Company’s operating capacity is about 17,000 tons per annum of tires and tire tubes with over 100 SKUs. It is strategically located in one of the fast growing industrial corridors of India with good infrastructure facilities and road connectivity.
Market
The Company exports to 21 countries in Middle East, North Africa, Latin America and South and Southeast Asia. For the Indian market, it sells four brands and has a distributor network across Gujarat, Maharashtra, Andhra Pradesh and West Bengal.
The Indian tire industry is about USD 6 billion with exports contributing around USD 0.7 billion. During FY11, India produced around 119 million tires. Tire production in India is expected to grow at 10% during FY11-FY16.
The Company has a strong management team with in-depth industry knowledge, and a strong R&D and design team. This is an opportunity to acquire a majority stake in the business.
Sector: ManufacturingSegment: Vehicle Tires and TubesRegion: IndiaFinancing Size: $5m to $20mContact: Venkata Subramanian
Company: Trans Corproate AdvisoryTelephone: +91 984 091 3808Email: [email protected]