MTPL

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Mahansaria Tyres Private Limited (MTPL or “the company”)) was originally incorporated as Keshav Properties Private Limited in 2014 and got its name changed to Mahansaria Tyres Private Limited in 2018. The Sponsors of the company (Mr. Ashok Mahansaria and Mr. Yogesh Mahansaria) were previously the sponsors of Balkrishna Industries (“BKT”), a leading Indian manufacturer of paper boards and off-highway tires (“OHT”) and Alliance Tire Group (“ATG”), a focused OHT manufacturer and an IFC investment client between 2012 and 2016. The Sponsors of MTPL are no longer associated with BKT and ATG.MTPL plans to setup an OHT business (the “Project”) focusing on the after-market for tires used in agriculture and construction machinery. The company has started construction of a greenfield OHT manufacturing facility (“the facility”) in a special economic zone (SEZ) being developed by HBS (a real estate developer focussing on residential, commercial and industrial development), in Panoli Industrial area of Gujarat Industrial Development Corporation (GIDC), about 105 km from Vadodara and 20 km from Ankleshwar, in Gujarat. The SEZ was earlier planned to be developed by HBS as a pharma SEZ, however, now has been changed to an automobile SEZ. Out of the total SEZ land of 307 acres, 127 acres (or 514,000 m2 ) has been sub-leased to MTPL for development of the proposed facility.The proposed facility is expected to have a manufacturing capacity of 70,000 metric tonnes (MT)/annum built in two phases. The construction of Phase-1 with a capacity of 40,000 MT/annum is ongoing and it is expected to be operational by June 2020. Construction of Phase-II with additional capacity of 30,000 MT/annum will start after Phase-I is operational and it is expected to become operational by March 2024.The main operations at the facility will include raw materials preparation and mixing, component making, tire building, tire curing and finishing. The key raw materials will include rubber (natural and synthetic), carbon black, process oils, chemicals, clay and tire cord.The proposed investment is (i) a senior A-loan for S$ 30 million and (ii) equity of INR 542 million for the project.