MTPL To Set Up Off-Highway Tyre Plan In Gujarat
Published On 07-Dec-2019 02:56:25
International Finance Corporation will provide a loan of up to $30million and it will buy a stake in MTPL for up to $7.74 million
Mahansaria Tyres Private Ltd (MTPL) plans to set up a $107-million facility to manufacture off-highway tyres in Gujarat. The project will be backed by the International Finance Corporation (IFC) through equity and loan. IFC will provide a loan of up to $30million and it will buy a stake in MTPL for up to $7.74 million.
MTPL is owned by Ashok Mahansaria, Yogesh Mahansaria and Yogesh Investments Private Ltd., a former sponsor of Balakrishna Industries and Alliance Tyre Group. The company has over 25 years of experience in off-highway tyres used in the agriculture and construction industry.
"IFC's investment will provide validation of a greenfield business plan and the growth prospect of the sector. This will send a positive signalling effect to other investors on the soundness of the project and help attract investors for the current and future financing stages," said IFC.
The Indian off-highway tyre market is price sensitive due to low far income. As a result, the product range in India is not as advanced as in EU and North America, where more application-specific solutions are available.
MTPL plans to gain by producing more product in the value brand off-highway segment, considering the conversion costs in India are lower than in other manufacturing bases.
Source: Business Standard