Sweden-based engineering and polymer major, Trellborg has signed an agreement with Mahansaria family to form a joint venture in India for manufacturing of tyres for two-wheelers. For Mahansaria family, this venture is a part of its strategy to enter the fast-growing two wheeler tyre market in India. The JV will be owned by the Mahansaria family and Trelleborg, in the ratio of 76:24 respectively.
At present, Trelleborg is focused on the European market for manufacturing of tyres for the two-wheelers. The JV is expected to pave the way for Trelleborg to grow its business globally by gaining access to additional production capacity. The partners will establish a production site in western India, with deliveries targeted to begin by the end of 2020. According to sources, the JV will invest more than Rs 1,000 crore to establish the manufacturing facility.
Commenting on the development, Yogesh Mahansaria, from the Mahansaria family said, “We have known Trelleborg over the last two decades and deeply respect their progressive and entrepreneurial business spirit. Through this joint venture, we look forward to providing technologically advanced products of global standards to the ever-evolving Indian two-wheeler tyre market.”
The Mahansaria family has over 30 years of experience in the tyre industry, having being leading stakeholders in two businesses - Balkrishna Industries and Alliance Tyre Group - in the field of Off-Highway Tires. The family along with other shareholders sold their stake in ATG to Yokohama Rubber Company, Japan in 2016.