Apollo Vredestein BV

A European Base

Location: Enschede
Activities: Tyre manufacturing
Industry: Automobile
 
In a business climate marked by despair over the global economic slowdown, the acquisition of Netherlands-based tyre manufacturer Vredestein Banden BV by Indian company Apollo Tyres in May 2009 was nothing short of dramatic.

Having first identified Vredestein Banden BV as one of the last major independent European tyre manufacturers a few years ago during a strategic planning exercises, Apollo Tyres was awaiting the right opportunity to acquire the company.

The acquisition was an ideal strategic fit for Apollo Tyres as it gave them access to the highly competitive, quality-conscious and tech-savvy European market with its well-established distribution network in Europe and select regions of the world, including the United States. Moreover, Vredestein was already established as a strong, premium brand in Europe, recognised for its world-class passenger car tyre technology. Its manufacturing unit in Enschede had a production capacity of 5.5 million passenger car radials and a pool of talented individuals that Apollo took into its fold.  Moreover, Vredestein was a profit-making and fast-growing enterprise.
Says Onkar Singh Kanwar, Chairman and Managing Director, Apollo Tyres Ltd,
“What eventually matters is the long-lasting value you create for the business and its stakeholders, and Vredestein provided us with an opportunity to do both. This acquisition couldn't have come at a better time.”

The Apollo Tyre team was highly impressed by the efficiency and thoroughness of the Dutch authorities during the acquisition process. Explains Mr Kanwar, “Given that this was an acquisition we were making from a parent company that had declared bankruptcy, we were amazed by the speed, sense of urgency, transparency and complete attention to detail in the entire process. The role played by Dutch administrators in cases like this cannot be over emphasised and the administrator's role in ensuring that the process meets with the approval of all interested parties was key. It's a model system where acting in a timely fashion can often be a lifeline for companies in bankruptcy situations.”

Apollo Tyres clearly intends to offer brands of choice and services to the discerning European consumer. “As always, we are committed to offering the benefits of technologically superior products at optimum value points,” concludes Mr Kanwar.

Source: Adapted from an interview in online newsletter Connect published in May 2009