Mahansaria Family, the founders of Alliance Tire, and Trelleborg AB (publ) have signed an agreement to form a joint venture in India for the manufacturing of tyres for two-wheeler vehicles. For Mahansaria Family, this venture is a part of its strategy to enter the fast-growing two wheeler tyre market in India.
Currently, Trelleborg is focused on the European market for the manufacturing of tyres for two-wheelers. The joint venture will pave the way for Trelleborg to grow its business globally by gaining access to additional production capacity.
The joint venture will establish a production site in Western India and deliveries are expected to begin by end of 2020. The joint venture will be 76:24 owned by the Mahansaria family and Trelleborg, respectively.
Commenting on the development, Mr Yogesh Mahansaria from Mahansaria Family says, ‘‘We have known Trelleborg over the last two decades and deeply respect their progressive & entrepreneurial business spirit. Through this joint venture, we look forward to providing technologically advanced products of global standards to the ever-evolving Indian two-wheeler tyre market.'' He further elaborates that the joint venture will help bring foreign technology and capital to India for manufacturing locally and serving Indian as well as global markets.
The Mahansaria family has more than 30 years of experience in the tire industry. During this period, they have built two industry leading businesses (Balkrishna Industries Limited; Alliance Tyre Group) in the field of Off Highway Tires. The Mahansaria family, along with other shareholders, sold their shareholding in ATG to Yokohama Rubber Company, Japan in 2016.