GRI seeks ‘exponential' growth with Baltics-based acquisition

COLOMBO, Sri Lanka—Specialty tire manufacturer Global Rubber Industries (Pvt.) Ltd. (GRI) has acquired Estonian specialty tire distributor Protyre OU, which serves customers in the Baltic nations Estonia, Latvia and Lithuania.

The acquisition, along with its 2019 acquisition of Nortire Group S.A., "strengthens GRI's position to service material-handling, agriculture and original-equipment manufacturing customers throughout the Baltics," GRI said.

Järveküla, Estonia-based Protyre, which also provides tires for trailers, primarily supplies the OEM segment in Estonia and Finland.

Martynas Jankauskis, managing director of Nortire, said the synergy between Protyre and Nortire puts GRI in a position to increase its sales tenfold in the Baltics, but didn't cite specific sales volumes.

In business since 1991, Protyre recently opened a 3,600-sq.-ft. warehouse near Tallin, Estonia, that features 21-foot-high racks for tires. The facility also will have tire-mounting presses for solid tires as well as a range of large and small specialty tires.

The company also opened a new office at the facility.

"It is very difficult for a new player to enter this market segment, and through the acquisition of Protyre, GRI has access to these lucrative sectors and has the potential to grow exponentially," Jankauskis said.

"With the acquisition by GRI, Protyre will now be catering to both the OEM and replacement market throughout the Baltics region and support GRI with its current partners in Finland," said Mahesha Ranasoma, CEO of GRI.

Jankauskis said the initial customer feedback has been positive, and OEMs seem happy.

"The high quality of tires, and the fact that GRI has the capability to manufacture the required tire types and sizes in its state-of-the-art facility in Sri Lanka, professionalism and reputation built in the Baltics will strengthen the Nortire and Protyre synergy where business will grow rapidly in the coming months," he said.

GRI Managing Director Prabhash Subasinghe said the acquisition marks another significant step in GRI's expansion plans in the Baltics and "is a part of GRI's overall strategy in terms of expanding into new markets.

GRI produces materials-handling solid tires, radial agriculture tires and construction tires. GRI has operations in nine countries and a presence in more than 50 countries worldwide.