 "Photo Courtesy: Apollo Tyres")
India’s second largest tyre maker Apollo Tyres has acquired Germany-based tyre distribution firm Reifencom for Rs 322 crore to strengthen presence in the European market. This is the first such acquisition of a distribution entity by the Indian entity .
Reifencom GmbH is one of the leading tyre distributors in Germany and operates 37 stores and service centres in that country. The company also has an online presence in six countries —Germany, France, Italy, Austria, Switzerland and Denmark. Reifencom was one of the leading distributors of tyres manufactured by Apollo and other companies. It will continue to be a multi-brand distributor. At the Bombay Stock Exchange, Apollo’s stock price gained 1.68 per cent to close at Rs 157.70. “The acquisition is a strategic fit in further growing our European business. It will enable the company to improve its mix of distribution channels in Germany and Europe and to increase visibility in the offline and especially the fast growing online retail space”, company’s Vice-chairman and Managing Director Neeraj Kanwar said.
Gaurav Kumar, chief financial officer, said the company will fund the acquisition through internal accruals. Europe is an important market for Apollo outside India, accounting for 30 per cent of its annual consolidated revenue of Rs 12,725 crore.
