• FEBRUARY 15, 2000

Continental buys 15% stake in Apollo Tyres

Continental AG, Germany, the fourth largest tyre manufacturer in the world, has finally picked up 15 percent equity stake in Apollo Tyres

Apollo Tyres is a leading tyre manufacturer in the country, with large exposure to the truck and bus segment (T&B) which accounts for 80% of total revenues. It is the second largest company in the T&B segment with 15% market share. Currently, Apollo Tyres has a technical tie-up with Continental Tyres AG.

With an equity stake in Apollo Tyres, Continental AG's commitment to the company will increase manifold. While earlier it only had a technical tie-up and was not strictly affected by Apollo Tyre's fortunes, it is now a partner in the company. It will also afford Continental AG a firm foothold in the Indian tyre market, as it will be able to launch its overseas brands in the Indian market.

As far as Apollo Tyres is concerned, it will get regular technological inputs from Continental AG. In a way this will ensure that it is a step ahead of its rivals, mainly MRF. Continental's equity stake will also open up European markets for Apollo Tyre's exports.

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