New Delhi, Oct. 31: Apollo Tyres, which is carrying out a due diligence exercise prior to acquiring the plant of Modi Rubber Limited, is planning to acquire two more tyre plants in the country, one of which will be announced in two weeks’ time.
Giving out these details, at a press meet to announce the half yearly results of the company, Onkar S. Kanwar, chairman and managing director of Apollo Tyres said, “The due dilligence for Modi Rubber Limited will be completed by the end of next month. Acquisition plans for another company will be announced in two weeks.”
“In principle both the brothers (B.K. Modi and V.K. Modi) have agreed to sell the assets of MRL,” Kanwar said.
He said the details of the agreements with the FIs which hold a substantial part of equity stake in MRL is being worked out. “I am optimistic that the deal will happen within this fiscal year,” said Kanwar.
However, Kanwar refused to say how much Apollo Tyres intended to invest in MRL or how much it would pay for other acquisitions. He was equally tight lipped about naming the companies whose plants are being targeted.
On the nature of association with Continental AG of Germany which provides technical knowhow to both Apollo and Modi, Kanwar said, “We will be working more closely with them.” He said that though several round of talks had taken place with Continental AG on the possibility of the German tyre maker picking up a stake in Apollo, “nothing has happened so far”.
Apollo is also going to launch a new truck radial in 2004 in technical collaboration with Continental AG. At present, it imports truck radials from Continental.
The net profit of Apollo Tyres Limited (ATL) has grown by 750 per cent to Rs 27.35 crore during the second quarter of the current fiscal compared with Rs 3.22 crore for the corresponding period last year. In cumulative terms for the first half of the current fiscal, the company’s net profit has increased by 297 per cent to Rs 48.97 crore against Rs 12.33 crore in the first half of fiscal 2001-02.
ATL has reported net sales income of Rs 483.64 crores during the quarter, an increase of 23.4 per cent compared with the second quarter of previous fiscal. Net sales income for the first half of the current fiscal has grown by 14 per cent to Rs 968.86 crore from Rs 846.97 crore last year.