Italian off-road tyre retreading specialist Marangoni has acquired its partner GRP’s 50% stake in their Indian joint venture company Marangoni GRP.
The acquisition was made through Marangoni's wholly-owned South Africa-based subsidiary Leader Rubber Company.
The JV company, incorporated in late 2015, operates in India’s commercial tyre retreading sector. With this acquisition, Marangoni says it is embarking on its solo venture in India, a fast-emerging key market in the retreading sector.
Vittorio Marangoni, president of Marangoni Group, says his company is focusing on India as the most growing country in its global expansion plans.
With its flagship product, RINGTREAD, the company says it has established a premium and unique position in the Indian truck tyre market and amongst quality conscious fleets through its chain of franchisee partners in Gujarat, Maharashtra, Kerala, Tamil Nadu and Telangana.
While the JV has achieved some key milestones over the last few years, Marangoni says it intends to deepen and accelerate its business in India with the JV acquisition.
Brett Sproson, MD of Leader Rubber Company, said that he was excited to see the progress the company and its franchisees have made in establishing the Marangoni brand in India. He believes that the market dominating position that Leader enjoys in Africa has great synergy with the Indian market.
Sproson adds that Leader Rubber’s deep experience in flat treads will add to the Indian team’s focus on RINGTREAD, establishing a potent product portfolio to cater to more fleets and applications.
Hemant Kaul, CEO of Marangoni in India, says the forward path of the company is clear, and the focus is on supporting its franchisees in growing their business and margins in their markets.
Kaul adds that the recent and growing trend of fleets seeking high quality retreading solutions amongst galloping tyre prices, is here to stay and provides Marangoni with a unique opportunity to increase its market share. In recent months, Marangoni says that several of its customers have displayed a strong desire to significantly increase their retread to new tyre ratio to shield their business from rising costs.
