By Denna Bowman
India’s leading tyres maker has completed the acquisition of the Netherlands-based tyres manufacturer Vredestein Banden.
Apollo tyres bought the firm for an undisclosed sum from Russia’s largest tyre manufacturer Amtel-Bredestin, which was declared bankrupt last month.
Neeri R S Kanwar, vice chairman and joint managing director of Apollo tyres, said: “Vredestein Banden is a very high premium tyre maker in Europe and this gives us the platform to immediately get into the European market and also take the Apollo brand there.”
Asked about the financial figures involved in the acquisition, he said: “We are not disclosing the details but as far as Vredestein Banden is concerned it is a profitable company with eight per cent year on year growth with 305 million euros of turnover.”
Vredestein has a manufacturing unit near Amsterdam with a production capacity of 5.5 million tyres annually, 70 per cent of which are high-performance, high-speed passenger car tyres sold primarily in the European Union. It has two brands, Vredestein and Maloya sold in the European market.
The newly acquired company will be renamed as Apollo Vredestein BV.
Onkar S Kanwar, chairman and managing director of Apollo Tyres, said: “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.”
Rob Oudshoorn, CEO of Apollo tyres European operations, added that Vredestein will bring to Apollo its edge in passenger car tyre technology alongside an understanding of the European market.
He said: “At the same time, Apollo can offer us access to the non-European markets, valuable manufacturing expertise and assistance with bringing down costs by leveraging the purchasing power of a larger entity.”