Apollo Tyres Tyre industry
Budget 2016-17 did not propose to impose anti-dumping duty of about $25/tyre or raise import duty from 10 to 30 percent, as was widely expected. Picture: Apollo Tyres reported a sharp rise in net profit and a marginal declines in sales for the third quarter ended December 2015. Picture: An employee at the warehouse at Apollo Super Zone showroom in Mumbai.Reuters file

Apollo Tyres announced on Monday that it has acquired Reifencom GmbH, a tyre distribution company in Germany, for €45.6 million, describing it as a "strategic fit" to grow its European business."

The $2.08 billion company (2014-15 revenues) said that  Reifencom GmbH has an online presence in Germany, France, Italy, Austria, Switzerland and Denmark, besides stores and service centres across Germany.

"The acquisition...will enable Apollo to improve its mix of distribution channels in Germany and Europe and aid in increasing the visibility of Apollo and Vredestein tyres in the offline and especially the fast growing online retail space," said Neeraj Kanwar, Vice Chairman and Managing Director, Apollo Tyres, in a statement.

Reifencom GmbH also welcomed the acquisition.  

"It is our privilege to join hands with Apollo Tyres, where the team shares our passion for providing world-class products and customer service," said Olaf Sockel and Heiko Knigge, Managing Directors, Reifencom GmbH.

Apollo Tyres had reported a decline in sales and a sharp rise in net profit. While sales were down 10.4% at Rs 2,996.93 crore during the quarter, from Rs 3,346 crore in the corresponding period last year, net profit was Rs 278.74 crore, up 8% from Rs 257.94 crore in the quarter ended September 2014. 

The company's chairman, Onkar S Kanwar, had attributed the fall in sales to an "almost 100 percent increase" in imports of truck and bus radial tyres. 

The Apollo Tyres stock closed at Rs 157.70 on Monday on the Bombay Stock Exchange, up 1.68% from its previous close on Friday.