Emerald Tyre to Acquire South African Tyre Firm

Chennai (Tamil Nadu) [India], January 27: Emerald Tyre Manufacturers Limited (NSE: ETML | INE0RHD01013), one of India’s leading manufacturers and exporters of Off-Highway and Industrial Tyres, has announced a strategic step in its international expansion journey with plans to acquire a 65% controlling stake in SA Rubber Engineering Pty. Ltd., South Africa.

The proposed acquisition, approved by Emerald Tyre’s Board of Directors on 22 January 2026, involves an investment of up to ₹14 crore through a mix of cash and non-cash consideration. Upon completion, SA Rubber Engineering will operate as a subsidiary of Emerald Tyre Manufacturers Limited. The transaction is expected to be concluded within the next six to eight months, subject to customary approvals and conditions.

This strategic move is aimed at strengthening Emerald Tyre’s global footprint while accelerating access to key export markets, particularly the United States. South Africa offers a strategic geographic advantage, serving as a gateway to high-growth African industrial and mining tyre segments while also acting as an export launchpad for global markets.

The decision is underpinned by South Africa’s strong structural advantages, including a deep-rooted industrial and mining ecosystem, efficient logistics and port infrastructure, seamless access to global trade corridors, and a stable, growing economic environment. These factors together create a scalable base for Emerald Tyre’s international operations and long-term growth strategy.

SA Rubber Engineering brings significant operational strengths to the partnership. The company has an established regional distribution network and proven expertise in industrial and mining tyres, rebuilt tyre solutions, and poly wheels. Its existing manufacturing base and customer relationships provide immediate operational readiness, enabling Emerald Tyre to scale overseas operations without significant gestation time.

Post-acquisition, SA Rubber Engineering is expected to play a central role in Emerald Tyre’s Africa-focused growth strategy while supporting export volumes to global markets. The business is positioned to serve multiple industrial end-use segments and will act as a core driver for the Company’s international expansion plans.

Commenting on the proposed acquisition and international growth strategy, Chandrasekharan Thirupathi Venkatachalam, Chairman & Managing Director of Emerald Tyre Manufacturers Limited, said that the Company’s approach to growth has always been measured and purposeful. He noted that the proposed acquisition represents a natural extension of Emerald Tyre’s capabilities into international markets, with South Africa providing a strong base to engage with African customers while serving global markets, including the United States, in a disciplined manner.

He further emphasized that the investment reflects a long-term commitment focused on operational alignment and scalable growth. The transaction has been structured with strong governance, arm’s-length execution, and financial discipline, allowing Emerald Tyre to maintain flexibility while creating sustainable long-term value.

Founded in 2002 and headquartered in Chennai, Tamil Nadu, Emerald Tyre Manufacturers Limited is widely recognized for its comprehensive range of Off-Highway and Industrial Tyres. The Company serves material handling, mining, airport ground support, ports, agriculture, and construction equipment segments. Its product portfolio includes solid resilient tyres, press-on bands, industrial pneumatic tyres, wheel rims, steel bands, and fitment solutions.

Emerald Tyre operates a modern integrated manufacturing facility at the SIPCOT Industrial Estate in Gummidipoondi, Tamil Nadu, supported by strong in-house R&D and mould design capabilities. With wholly owned subsidiaries in Belgium and the UAE, the Company has established itself as a preferred OEM supplier and a trusted export partner globally. Its products are marketed under the well-recognized brand name “GRECKSTER.”