Metro Tyres eyes European markets

After consolidating its operations in India and other Asian markets, Ludhiana-based Metro Tyres, one of country's leading tyre manufacturers, is now eyeing European markets with its wide range of two-wheeler tyres.

The company recently set up its overseas office in Barcelona (Spain) to start its European operations.

Although Metro Tyres has marked its presence in the European market through its technology partner, Continental AG of Germany, the company is entering the market with its own brand "Ortem Tyres" for two-wheelers and bicycles.

Speaking to Business Standard, Rummy Chhabra, managing director, Metro Tyres Ltd, said, "Our operations in Europe will allow us to remain closer to our strategic customers in the region, develop the local market and increase the profitability of operations."

"Besides its commercial base in Barcelona, Metro Tyres will also be able to rely on its product distribution centre in the city to improve customer service, particularly in terms of supplies and logistics. This strategy will allow the company to supply the local market more efficiently and faster," Chhabra said.

The company will have its own team in Barcelona, comprising local employees, managed by its senior executives.

"We want to expand our customer base in continental Europe and provide products with higher value-added products and better services, as well as increase the company's exposure on the international market," Chhabra said.

"Our European strategy is similar to that pursued in the other overseas markets which centre on creating partnerships with well-established companies having extensive product ranges and sales networks in their target markets. In addition, we intend to continue forming new agreements with original equipment manufacturers (OEM) agreements," she added.

Recently, Metro has signed a new agreement with its existing partner Continental AG of Germany to roll out Tubeless motorcycle tyres. Under this agreement Continental AG will provide the technical know-how to Metro Tyres and the tyres will be manufactured in India. They will be manufactured primarily for overseas markets to cater to the demand of tubeless tyres among the global two-wheeler players like Honda, BMW and Yamaha, etc.

Later Metro will also roll out these tubeless motorcycle tyres in the domestic market.