Team-BHP - Continental to buy out Modi Tyres

High Points

- Continental Tyres (World no.4 tyre maker) signs an agreement to buy out 100% holding of Modi Tyres.

- Modi has, in the past, manufactured tyres under license from Continental. Modi's finances haven't exactly been in the pink of health though.

- It may be recalled that Bridgestone (especially), GoodYear and Michelin continue to expand their Indian operations.

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

Quote:

Originally Posted by GTO (Post 2318405)

Continental Tyres (World no.4 tyre maker) signs an agreement to buy out 100% holding of Modi Tyres

Looks like that's some real good news to cheer up. Even the markets have responded positively. Hope this deal helps Modi Group to hive off its unprofitable business.

Quote:

It may be recalled that Bridgestone (especially), GoodYear and Michelin continue to expand their Indian operations

Would be great if Continental AG catches up with the other prominent players in the Indian market soon. If Continental AG devises the right strategy to revive its product line in India, that's sure gonna eat away into the market share of the other top players in the market. Ultimately that would translate into better choices for the end user at better prices!

Guess it would not be out of context here to reckon that Continental AG already has a strong PAN India presence with its automotive group plants in Bangalore, Pune and Delhi.

The Group's other core competencies include brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tyres and technical elastomers to auto players worldwide.

I certainly hope that the quality of tyres remain German. Modi Continental was not quite up there when they were selling that brand, it was mostly restricted to Heavy Vehicles.

As for Continental, they are not easy to find here in Gurgaon, and there are enough good tyre stores here. So the first step would need to be better network.

Cheers

Continental acquires Modi:

High Points

- Continental acquires 100% stake in Modi. Now has local production and distribution of bias and radial truck & bus tires and radial passenger car tires.

- The purchase price consideration for 100% of the shares of MTCL is approx. 18.5 million Euros (about 120 crore rupees)

- Continental Tyres India Ltd will have its registered office in Delhi with manufacturing facilities both in Modipuram and Partapur.

I picked up a pair of Continental tubeless tyres, stock standard size for my Esteem in Dec '10 @ 2200/- a pc from Singh Shoppe, CR Park, N.Delhi.
Pretty nice tyres,grip/noise wise.
Am very satisfied at the quality/price combo as Bridgestones were almost 5-600 bucks a pc more, & am planning to replace my rear two tyres with Continentals soon.