Apollo Tyres set to acquire US-based Cooper Tire & Rubber

Apollo enjoyed so-called troubled markets like Europe where it achieved it best profitability over last few years

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Apollo tyress is set to acquire the US headquartered Cooper Tire & Rubber Company, making the company global player with 14 plants spread across India, the United States, China, Europe and Mexico, said Onkar S Kanwar, chairman.

Delivering Chairman’s address at the annual general meeting (AGM) here today he said that Apollo had enjoyed the so-called troubled markets like Europe  where it achieved it  best profitability over the last few years.

The discovery of shale oil and gas is a huge boon to US manufacturing industry and already a number of companies, including global giants  have announced plans for new manufacturing facilities there.

What was always the largest market will now also enjoy strong growth and given the already vast potential there the numbers can be mind-boggling.

To quote one example, even a one% growth in the US tyre market calls for the addition of a new manufacturing plant every year to meet the increased demands.

The company has  put in place a strategy that recognises  the progress across the globe  and ensures that the company  do not have over-dependence on any one geography or product category.

"We have tried to de-risk for your benefit, by broadening our revenue and profit streams from diverse geographies and different product categories. Your company will have equal exposure to the developed and profitable markets as also to the emerging high growth markets," he added.