Two Indian Tyremakers to Merge

The board of the Ruia group’s Falcon Tyres have approved the merger of their company with Montona Tyres, another company within the group. The announcement was made by Falcon Tyres chairman P.K. Ruia, and once the board of Montona gives their go ahead the decision will be taken before the regional high courts where the tyremakers are based to gain official blessing for the merger.

P.K. Ruia spoke of the ‘obvious synergies’ that would arise from the proposed merger, as both companies produce tyres and inner tubes for two and three wheeled vehicles, while Montona had the additional capacity for making tyres and tubes for light trucks. “Nearly 50 per cent of Bajaj Auto’s (an Indian cycle and scooter manufacturer, currently holding 34 per cent of the market) requirement is fulfilled by these two companies and it will be logistically rewarding to shift the entire supply base to Montona once it becomes a Falcon unit,” Mr. Ruia told local media.

By April Falcon will have completed a £9 million expansion program that will increase its capacity from the current 550,000 units up to 750,000 units. As part of this program the company will set up a 3 MW co-generation facility.