Indian Apollo Tyres Acquires Dutch Vredestein
To bolster its strategic plans for the European market, tyre manufacturer Apollo has bought Vredestein Banden BV of the Amtel-Vredesteins bankrupted estate. Next to bicycle tyres, Vredestein Banden annually sells
HARYANA, India – To bolster its strategic plans for the European market, tyre manufacturer Apollo has bought Vredestein Banden BV of the Amtel-Vredestein’s bankrupted estate. Next to bicycle tyres, Vredestein Banden annually sells 5.5 million high performance, high speed passenger car tyres.
Apollo Tyres is currently not producing bicycle tyres or is in any other way involved in the two-wheeler industry. According to a spokesperson inside the company it is too early to expect any changes in the production location of the Vredestein bicycle tyres which are currently made by Ralson Industries Ltd. in India.
“The fit between the two companies spans the entire spectrum of R&D, products and people to manufacturing and markets. It is a synergistic match and our aim is to increase Vredestein’s global value in the coming years”, says Onkar S Kanwar, Chairman & Managing Director, Apollo Tyres Ltd (right).
“This alliance is a win-win combination for both companies,” adds Vredestein Banden CEO Rob Oudshoorn (middle). “We will bring to Apollo our edge in passenger car tyre technology alongside an understanding of the European market. At the same time, Apollo can offer us access to non-European markets, valuable manufacturing expertise and assistance with bringing down costs by leveraging the purchasing power of a larger entity.”
“We will continue to run Vredestein Banden under the leadership of the current Vredestein management”, says Neeraj R S Kanwar, Vice Chairman & Joint Managing Director, Apollo Tyres Ltd (left). “Next month we will start a comprehensive integration process. Areas of particular focus will be R&D, products and brands, corporate purchase and finance. At the end of the process, which will involve managers from both companies, a consolidated plan for the short and medium term will be put into action.”
Vredestein Banden became part of Russia’s largest tyre maker Amtel in April 2005. Amtel’s bankruptcy has not affected the Netherlands-based Vredestein Banden, which continues to remain a viable entity.
Last year Vredestein Banden reported a turn-over of € 307. The company currently employs 1,500 people. The company has achieved a CAGR of 8.5% in revenue over last five years, a figure that is significantly higher than the industry growth rate in Europe.
Neeraj R S Kanwar, Vice Chairman & Joint Managing Director, Apollo Tyres Ltd (left), Vredestein Banden CEO, Rob Oudshoorn (middle) and Onkar S Kanwar, Chairman & Managing Director, Apollo Tyres Ltd (right) rising the glass on closing the deal.
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- For related items on Vredestein, click here
- For related items on Amtel, click here