NEW DELHI (May 30, 2008) — Indian tire cord maker SRF Ltd. is buying Thai Baroda Industries Ltd. to help it expand in the Southeast Asian market.
SRF, India's largest tire cord maker, will pay about $23.5 million to buy Rayong, Thailand-based Baroda, which operates 12,000 metric tons of annual capacity for dipped nylon tire cord fabric.
Thai Baroda is a joint venture company involving Thai and Indian investors, including Baroda Rayon Corp. of India. The venture reported sales of $50 million last year.
The deal is subject to review by Thai authorities, SRF said, and therefore should take a few months to complete.
The acquisition will raise SRF's annual capacity to 65,000 tons a year.