Michelin's Indian investment to reach €1000 million - report

ERJ staff report (DS)

India -- An Indian newspaper, quoting un-named sources close to the deal, has said Michelin intends to invest up to euro 1000 million in India over the next 10 years. Michelin declined to comment on the report, but has previously said it is continuing to invest in India, despite reductions in its capital investment budget in other parts of the world. Michelin has said it is planning to build a tyre factory in India for the manufacture of off-road and truck tyres

The report in today's Economic Times, said Michelin "is looking to invest up to Rs 7,000 crore (euro 1000 million) in India over a 10-year period to make and market radial tyres and tubes in the country." The report adds that a further Rs 3000 million (euro 400 million) tranche might be allocated after the initial phase is complete.

The report continued, "A person directly involved in the transaction said the French tyre giant has sought government approval to acquire 100% stake in a new company Michelin India Tamil Nadu Tyres formed in April 2009. This company will set up the proposed greenfield unit, which would absorb investment worth Rs 4,000 crore in the first phase running into 2016."

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Michelin to invest Rs 7,000 cr in India Economic Times (India)