ATC Tires to invest Rs 4,000-mn in TN

Chennai: ATC Tires plans to set up a Rs 400-crore tyre manufacturing facility in Tamil Nadu. The company promoted by Yogesh Agencies & Investments, a Mahansaria company, and Warburg Pincus, the equity investment company, signed an agreement with the Tamil Nadu Government to set up a tyre manufacturing facility in Tirunelveli district. It is to come up at the Gangaikondan Industrial Estate set up by the State Industries Promotion Corporation of Tamil Nadu.

Last year, Mr Yogesh Mahansaria, former CEO of Balkrishna Tires of the Siyaram Group, and Warburg Pincus acquired the Israel-based Alliance Tire Company in a $150- million deal. At the time, Mr Mahansaria announced that a greenfield facility would be set up in India to augment Alliance’s production capacity in Israel for producing specialty off-highway tyres.

Alliance is based in Hadera, Israel, and has been in business for over five decades in developing, manufacturing and marketing a range of off-highway tyres and passenger vehicle tyres. Its products are exported to over 65 countries and find application in agriculture, forestry, mining and construction industries.

ATC Tires will invest over Rs 400 crore over the next five years, the release said. The facility will generate over 1,800 jobs, 1,000 of them direct.