MUMBAI, India (July 19, 2012)—Indian tire maker Govind Rubber Ltd. is taking over fellow Indian tire firm Mewat Tire & Rubber Co. (Pvt.) Ltd. and is upgrading Mewat's bias-ply agricultural, specialty and off-the-road tire capacities to radial.
Rayne, La.-based wholesale distributor Interco Tire Co., which has sourced tires from Mewat for the past few years, is an investor in the deal. Financial terms of the merger weren't disclosed, pending review by Indian authorities
Mumbai-based Govind Rubber is a 48-year-old producer of tires and tubes primarily for two- and three-wheeled vehicles, particularly premium bicycle tires and tubes. The company generates about $75 million in annual sales, according to information published by the firm.
Mewat Tire makes bias-ply farm, industrial and OTR tires at a 100,000-sq.-ft. plant in Alwar, Rajasthan, in northwest India.
Govind Rubber isn't disclosing at this time the size of the investment in upgrading Mewat's plant nor details about the plant's capacities. Govind Rubber is part of V.M Poddar Group, a diversified company headed by Vinod Poddar, chairman and managing director, and his son Rahul Poddar, executive director.
Poddar Group has operations in synthetic rubber, cement and entertainment, and reports annual sales of more than $500 million.
Mewat has been controlled primarily by three main shareholders, a spokesman for the deal said, including distributor American International Tires Inc. of Martinez, Ga., which—according to information posted on Mewat's website—was a founding partner in Mewat.
Interco CEO Warren Guidry said the acquisition will allow further investment in production equipment and strengthen its position as a supplier in the growing “application specific” tire segment.
At this point, the spokesman said, it's still to be determined which brand or brands the new entity will market. Up to now Interco marketed under its own brand name.