Exec Director quits Balkrishna, Plans to Purchase Alliance

Former Balkrishna Industries Ltd executive director Yogeshkumar (Yogesh) Mahansaria and his brother Ashokkumar have reportedly quit the fast-growing Indian tyre producer, citing “family differences” as the reason. Yogesh has now teamed up with US equity firm Warburg Pincus to Acquire Israel’s Alliance Tire for US$45 million.

Alliance has been in negotiations with the two buyers, and the transaction is expected to be completed before June. The Alliance purchase forms part of a new venture that Yogesh Mahansaria has been quoted as saying he intends to float in the near future.

Yogesh joined Balkrishna Tyres, his family’s struggling scooter tyre business, in 1993 at the age of eighteen. He then spent some time attending trade shows around the world, looking for a niche export market that the company could fill. As a result of his research Balkrishna retooled for the production of agricultural and construction industry tyres, and in the years since 2000 has become a globally competitive player, exporting 95% of all tyres produced.

According to Balkrishna’s head financier, BK Bansal, Balkrishna is not in any way involved in the current Alliance deal.