Titan’s shopping tour heads to India
In prior years the US-based off-road tyre specialist Titan International has expanded not just through organic growth, but also through strategic acquisitions. And according to company chairman and CEO Maurice Taylor, the shopping tour is not over yet. The next goal is the 50-year old Indian steel wheel manufacturer “Wheels India Ltd.”, a TVS Group company.
Titan Europe Plc acquired 35.9 per cent in the Indian subcontinent market leader as long ago as 1999, and its holding subsequently grew to 37 per cent. Now Titan is making an offer to acquire a further 14 per cent in Wheels India, giving it a majority shareholding and also a presence in the passenger car segment. The remaining 49.7 per cent shareholding lies with Southern Roadways Ltd., Sundaram Finance Ltd. and TV Sundram Yvengar and Sons Ltd. (TVS), a company with an annual turnover of around £2.5 billion and some 30 subsidiary and joint-venture firms.
Wheels India has steel wheel factories in Padi, Pune and Bawal (respectively for passenger cars and commercial vehicles), Rampur (for agricultural vehicles), Sriperumbudur und Padnagar. Overall annual capacity is 10 million wheels, and the factories employ a total of just under 2,000 workers. Most Indian vehicle manufacturers feature on the company’s customer list, and Wheels India also exports to North America, Europe, Asia Pacific and South Africa; all up, exports account for 18 per cent of turnover.
Reporting the deal, the US company says “the overall impact of the offer is immaterial to Titan International.” The offer is scheduled to close on March 12 2013.
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