Watts Lanka Pvt. Ltd. was a joint venture between Watts Tyres Ltd. of England and KVK Invest JSC of Bulgaria, principal shareholder in Balkancar Zarya P.L.C.
The acquisition of the Sri Lankan company will not only add much-needed capacity and considerably ease delivery pressures, but also provide strategic location advantages by establishing a base in the world’s center for solid tires. Work already has begun on adding more manufacturing equipment to increase the base capacity in Colombo. Production and shipment from Sri Lanka will commence within the next four weeks, Sun Tyre said.
Sun Tyre generates more than 95 percent of its sales overseas, with distribution across all continents, and despite expanding its manufacturing facilities in India substantially over the past three years, still finds itself seriously short of capacity. Even during the global recession, the company clocked a healthy growth rate of 40 percent, which it said is continuing unabated.
TVS Group describes itself as one of the 10 largest industrial groups in India, with annual sales of more than $6 billion. Among its holdings is TVS Srichraka, an automotive tire maker.
