 "Apollo Tyres sells South African business to Sumitomo Rubber")
The company would, however, retain the Durban plant which manufactures truck and bus radial (TBR) tyres and off highway tyres (OHT) used in the mining and construction industries, Apollo Tyres said in a statement.
Under the deal, Sumitomo Rubber Industries (SRI) would take over Apollo Tyres South Africa (ATSA) along with its Ladysmith-based car tyre plant.
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Apollo Tryes had acquired South Africa headquartered Dunlop Tyres International in 2006 for Rs 290 crore in an all cash deal and later renamed it to ATSA.
Commenting on the latest development, Apollo Tyres Chairman Onkar S Kanwar said: "Apollo retains one plant in South Africa and has the ability to develop further the markets for its global brands -- Apollo and Vredestein."
All employees of the company, other than those in the Durban plant, will continue with ATSA. Apollo will retain the Durban plant and all employees attached to it, the statement said, adding there would be no job loss due.
After the deal, SRI, a part of Japan-based Sumitomo group, would get a manufacturing location on African continent and control over the Dunlop brand, which they also use in many other countries across the world.
Both the companies would also undertake contract manufacturing of their respective brands at each other's facility to have locally manufactured products available for the market, said Appollo Tryes.
Post the deal, Apollo Tyres would continue to sell Apollo, Vredestein and Regal brand tyres in Africa while focusing on creating and strengthening its own sales and distribution network across the continent, it said.
"We have retained the manufacturing facility in Durban, as we would like to increase the presence of Apollo and Vredestein branded tyres in Africa, which we have already been selling in South Africa for the past few years," said Kanwar.
The company had the brand rights to sell the Dunlop brand only in 32 countries of Africa, he added.