Apollo Tyres eyes buyouts in Europe, SE Asia

Apollo Tyres, the country's largest tyre manufacturer, is planning acquisitions in Europe and South East Asia in the current financial year.

"We will be interested in acquiring companies that will synergise the group's expertise in the areas of manufacturing, overseas markets and new technology," said Neeraj Kanwar, joint managing director, Apollo Tyres.

Acquisition will also be a strategy to increase the proportion of radialisation in the company's truck and passenger car tyres.

In January, the company acquired South Africa-based tyre manufacturer Dunlop Tyres international, a radial tyre manufacturer for Rs 290 crore.

With the acquisition, it gained control of Dunlop's plants in South Africa and Zimbabwe and access to Dunlop markets in Europe, West Asia and Africa.

Apollo Tyres will consider raising funds for acquisition and business operations through debt, internal accruals and through funds to be raised by way of Rights and public issue of equity shares.

The company's board has recently approved the issue of equity shares of Rs 10 each for cash at premium, on a rights basis in the ratio of 1:6 and for every four equity shares allotted on a rights basis under the rights issue, the allottees will receive one warrant.

The board has also approved public issue of equity shares of Rs 10 each for cash at a premium, aggregating to Rs 200 crore.

The Dunlop acquisition has made Apollo largest tyre manufacturer in the country, with a capacity of 900 tonne, said company officials. The second largest tyre maker in the country, MRF is having a capacity of about 800 tonne.