Apollo Tyres, one of the world’s largest tyre manufacturers, announced that its Board of Directors has approved an issuance of compulsorily convertible preference shares in the company worth $150 million to an affiliate of Warburg Pincus, a leading global private equity firm focused on growth investing. The investment represents a primary capital infusion into the company and is subject to shareholder and regulatory approvals.
Commenting on the transaction, Onkar S Kanwar, Chairman and Managing Director, Apollo Tyres Ltd said, “I am delighted to announce Warburg Pincus’ investment in Apollo Tyres. Their investment is a strong vote of confidence in our business, management team and growth prospects. I believe the company will benefit from the backing of a large financial investor of their pedigree and our partnership will further strengthen Apollo Tyres’ board and governance.”
Vishal Mahadevia, Managing Director and Head, Warburg Pincus India, said “We see a compelling growth story in Apollo Tyres and believe the company is well-positioned to build upon the strong leadership position it has carved out within the industry. Warburg Pincus is excited to partner with the management team of Apollo Tyres in this journey and looks forward to supporting them during the next phase of the company’s growth.”
The leading tyre maker has been expanding its reach to new corners of the world. Recently, Apollo announced the setting up of its office in Nepal, which is a first for the company in the SAARC region, outside of India. The company has also tied up with Saudi Arabia’s Al-Jomaih Tyres Company Limited, the exclusive distributors for the Kingdom.
Apollo Tyres has clocked a turnover of $ 2.48 billion at the end of the financial year 2019. The company is backed by a global workforce of approximately 17,200 employees.
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