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Journalism of Courage
MUMBAI, March 10: Goodyear Tire and Rubber Company of the United States is infusing additional equity to the tune of Rs 300 crore in its Indian subsidiary — South Asia Tyres Limited (SATL) — for expanding capacity at the Aurangabad unit and lowering the debt burden.
This is in addition to the Rs 85 crore which the company had invested in August 1998 to acquire Ceat’s 50 per cent stake in SATL, Neville Moos, chairman of Goodyear in India said.
“Over the last six months, Goodyear has brought in about Rs 385 crore as investment. For Goodyear, India is a very important market and this new investment of Rs 300 crore would help improve and expand the facility at Aurangabad, in addition to lowering the debt burden, thereby strengthening the balance sheet. We will enhance our radial product offerings and strengthen our marketing and distribution network,” he said.
Besides, Goodyear India is implementing a Rs 40 crore expansion programme for rear farm tyres at its plant in Ballabhgarh. Moos further statedthat Goodyear and Sumitomo Rubber Industries (SRI) had recently announced a global alliance to integrate the two companies, creating synergies and efficiencies to produce and distribute high-quality tyres at a lower cost.
In Japan, Goodyear and Sumitomo will create two joint ventures, 25 per cent owned by US giant. The first will supply both Goodyear and Dunlop brand tyres to the original equipment manufacturers while the second will market Goodyear brand tyres to the replacement market through both companies’ distribution channels.
