Continental acquires Modi Tyres Company

Continental, an international automotive suppliers, has acquired Modi Tyres Company (MTCL), a subsidiary of Modi Rubber for EUR18.5m.

The two companies have agreed to keep other commercial details of the transaction confidential.

As per the acquisition MTCL has now become a fully owned subsidiary of Continental and will be renamed as Continental Tyres India Limited.

The new company will have its registered office in Delhi with manufacturing facilities both in Modipuram and Partapur.

The company said that it will focus on local production and distribution of bias and radial truck and bus tires as well as radial passenger car tires for the Indian market.

Continental member of executive board and head of the passenger and light truck tire (PLT) division Nikolai Setzer said the acquisition of MTCL underlines the company's commitment to the Indian market.

"It is part of our strategy to invest into local production of both passenger car tires and truck tires in growing markets in Asia," Setzer said.

"For the commercial vehicle tire business, for which Setzer will be responsible within Continental as of 1 August as well, the move is an important signal: India's truck tire market is of outstanding relevance worldwide and exceeds with a size of 18 million tires per year already the Western and Central European market."

MTCL former CEO Alok Modi said the highly motivated employees in Modipuram, Partapur and Delhi are looking forward to contributing their profound knowhow of the Indian market as well as the company's local distribution structure to the success of the internationally renowned corporation of Continental in an increasingly competitive market environment.