Modi Rubber Ltd

Modi Rubber Ltd

Incorporated in Feb.'71 Modi Rubber (MRL) a B K Modi Group Company manufactures automobile tyres. It has entered into a technical collaboration with the German tyre major Continental Aktiengesellschaft to manufacture steel radial tyres for trucks. The company has a state-of-the-art plant at Modipuram which is one of the most modern tyre manufacturing plants in Asia. The Company was earlier engaged in manufacture of automotive tyres tubes flaps and other allied products in its plants set-up in 1974 at Modipuram Meerut and Modinagar. Pursuant to the BIFR Scheme Modinagar Plant was with the Company for carrying out its industrial activities. However Modinagar Plant of the Company was under the Seal of Official Liquidator (OL) attached to the Allahabad High Court appointed by Allahabad High Court in Punjab National Bank Vs Modi Export Processors Ltd as the Company had taken Industrial Shed and land on perpetual lease from Modi Export Processors Ltd on which Company installed its Plant & Machinery for Modinagar Plant. The Company filed Special Appeal with Allahabad High Court for re-possession from the OL which was pending for final adjudication before the Hon'ble High Court. Further the Company implemented provisions of BIFR Scheme.The company has a 12.4% market share and is doing well on the export front. It has also won the CAPEXIL export award for its excellent export performance. MRL exports to countries like Vietnam the Philippines Singapore the US the UK Bangladesh Afghanistan Syria Sri Lanka and the Latin American countries. However exports to Pakistan and Afganistan received a set back due to political condition and a stiff competition from China. The company has set up the facilities for manufacture of automobile tubes at Partapur UP.The company expansion plans for manufacture of radial tyres for passenger cars and light commercial vehicles with latest technology from collaborator has been very supportive. The company has been successful in launching new range of Truck & LCV tyres as well as premium tractor tyres which are finding better acceptance in the market. It has introduced a number of new tyres for super heavy and heavy load areas under the brand name Multilife 2000 and Marathon 2000. The company is planning to tap normal load areas like South India and part of West Zone in India with upgraded technology tyres to further increase its market share in these regions.In a move that would aid the existing promoters of the company in coming up with an open offer for buying out the 44% stake of the financial institutions in the company the promoters have spoken to various NRI investors to bring in investments to the tune of $8-10 million the open offer by purchasing a maximum of 52.58 lakh shares representing 21% of the company's paid up equity. The proposal is awaiting a final approval from the Industry Minister.During 2008-09 Board for Industrial & Financial Reconstruction (BIFR) sanctioned a Rehabilitation Scheme for the revival of the Company on April 21 2008. Pursuant to Rehabilitation Scheme the business operations of Modipuram and Partapur Plants were vested in M/s Modi Tyres Company Pvt. Ltd. (MTCPL) a wholly owned subsidiary of MRL from March 31 2008. As a result Modipuram and Partapur Plants commenced their commercial production since 2009. Modi Tyre Factory (MTF)-Modinagar Plant which manufactures tyresother than Truck & Buses was set up by the Company and accordingly was taken from Modi Export Processors Ltd.( MEPL). MEPL was under liquidation and an Official Liquidator (OL) was appointed by an Order of the Allahabad High Court.