Modi Tyre Revives Technical JV With Continental

News published by various Indian media outlets indicates that joint venture activities between Continental Tyres and India’s Modi Tyre Company are again underway. The two companies have previously worked together, however this relationship ground to a halt with the closure of Modi’s Modinagar, Northern India plant in 2001, following labour unrest and litigations. Seven years on, Modi Tyre is said to have invested around Rs 3 billion (£39.6 million) to resume production at the site.

Tyres manufactured under the agreement will be marketed under the Continental brand. The current joint venture, like its previous incarnation, is said to be purely technical in nature and involves no investment from the German company. As Continental also collaborates technically with other Indian tyre companies, including JK Tyre and Metro Tyres, Metro was required to obtain a no-objection certificate (NoC) from such companies before progressing further with its plans. “The NoC has been obtained from the companies and submitted to the project approval board (PAB) for approval,” company sources said.

PAB approval is likely to come in December, following which the commercial production of tyres will begin. Initially, the company will manufacture 1.1 million truck tyres and tubes per annum. Factory repairs, computerisation and upgrades have already been completed in preparation for the go-ahead.