The biggest tyre cord manufacturer of India, SRF on Tuesday, May 27, announced that it has entered into a deal to acquire a tyre cord company of Thailand, Thai Baroda Industries Ltd. (TBIL) for Rs 100 crore. For dipped nylon tyre cord fabric, the TBIL is known to have a yearly production capacity of around 12,000 tonnes and it manages to generate sales of about $ 50 million.

 

A SRF spokesperson announced that the company will finance the working capital of TBIL. But the actual act of handing over the management control is subject to approval of the rehabilitation process by the Thailand Court. Elucidating the decision for the acquisition, the SRF’s MD, Ashish Bharat Ram said that his company is positive that after the financial revamping and consequent takeover of the TBIL management, it will succeed in turning around the TBIL Company in short time.

 

The MD of the SRF Company further added that the buyout of TBIL was a crucial move towards become an international player in this business sphere. The SRF has four production units in India and one subsidiary in Dubai. After its acquisition of the Thailand tyre cord manufacturing company, the total production capacity of SRF will come to 65,000 tonnes. This will then make SRF the third biggest manufacturer of tyre cord in Asia and the fifth largest in the world.