Newspaper reports reveal that Continental AG plans to enter into technology assistance and offtake agreements with Metro Tyres for the manufacture of scooter and motorcycle tyres. At a later stage, Continental would also consider entering into licensing agreement with Metro, whereby the latter would manufacture and market two-wheeler tyres under the Continental brand name.
Initially, Continental AG, will buy cycle tyres and tubes from Metro and will sell it in the international market under the ‘Continental’ brand name. This will beef up Continental’s presence in the international cycle tyre market.
If the Continental-Metro venture is successful, there could be more international tyre manufacturers outsourcing their requirements from India. This is so, because Indian labour is relatively cheap, and unit cost of tyre is low in the country. International majors could import cheaper tyres from India, and sell them in the overseas market to establish a presence in newer areas like cycle tyres.
The upside for the Indian partner will be a spurt in forex earnings. Moreover, it could enter into a licensing agreement with the international company to sell tyres in the Indian market under the foreign partner’s brand name. This will see an appreciation in domestic sales.
For the quarter ended December 2020, APOLLO TYRES has posted a net profit of Rs 4 bn (up 155.2% YoY). Sales on the other hand came in at Rs 52 bn (up 17.1% YoY). Read on for a complete analysis of APOLLO TYRES's quarterly results.
For the quarter ended September 2020, APOLLO TYRES has posted a net profit of Rs 2 bn (up 140.8% YoY). Sales on the other hand came in at Rs 43 bn (up 7.4% YoY). Read on for a complete analysis of APOLLO TYRES's quarterly results.
More Views on NewsLast time the smallcap index crossed 19k a big correction followed. Here's what makes it different this time.
In this video, I'll show you how to get started on the path to daily trading profits.
This could be the biggest wealth creator of the decade.
In this episode of the Investor Hour, India's #1 trader, Vijay Bhambwani, talks to us about the stock market, his new targets for gold and silver, the best long-term investment opportunity, and a lot more.
More
Equitymaster requests your view! Post a comment on "Continental, Metro set to sign deal". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!