Mahansaria Family Wednesday announced signing a pact with Swedish engineering company Trelleborg to set up a tyre manufacturing facility for two-wheelers in the country. The joint venture will be 76 per cent owned by the Mahansaria Family and the rest 24 per cent by Trelleborg, a release said.
The proposed facility will come up in western India and deliveries are expected to began in 2020, the release said. The company, however, did not disclose any details about the location or the investment in the said facility. For Mahansaria Family, this venture is a part of its strategy to enter the fast-growing two-wheeler tire market in the country, according to the release.
"Through this joint venture, we look forward to providing technologically advanced products of global standards to the ever-evolving Indian two-wheeler tire market," Yogesh Mahansaria from Mahansaria Family was quoted as saying in the release. Currently, Trelleborg is focused on the European market for the manufacturing of tyres for two-wheelers, the release said, adding the JV will pave the way for Trelleborg to grow its business globally by gaining access to additional production capacity.
"The JV is in line with the government's 'Make in India' initiative as it will help bring foreign technology and capital to India for manufacturing locally and serving Indian as well as global markets," said Mahansaria. The Mahansaria Family has more than 30 years of experience in the tyre industry. During this period, they have built two industry-leading businesses - Balkrishna Industries and Alliance Tyre Group for off-highway tires, the release said. They exited ATG in early 2016, selling their stake to Japanese tyremaker Yokohama.
(With inputs from agencies.)