The Goodyear Tire and Rubber Co, USA, parent company of India-listed Goodyear India, has put the latter’s farm tyre business on the block and launched the sale process, multiple industry sources in the know told Moneycontrol on the condition of anonymity.
The move follows an announcement in April that the Akron, Ohio-based global tyre giant had sought to conduct a review of the vertical.
“The deal was launched earlier this week and there is strong interest in the market for the division which has a hefty market share. Primarily strategic suitors have been tapped but there may also be a play for private equity funds who could explore tie-ups with smaller players. The segment has seen successful exits by PE fund in the past,” said one of the persons.
In 2016, private equity firm KKR sold its 90 per cent stake in Alliance Tire group to Japan’s Yokohama Rubber for $1.2 billion. Back then, the deal was one of the largest PE exits for an India-related business.
According to a second person familiar with the process, investment bank Citi has been engaged as the sell-side advisor and the valuation expectation is around $300 million.
In response to an email query from Moneycontrol, on April 21, 2025, The Goodyear Tire and Rubber Co, USA, said, “Goodyear informed the India Stock Exchange that the company has placed its farm tire business in India under strategic review. This strategic review is proceeding as planned.”
An email query to Goodyear India was left unanswered at the time of publishing this article. When contacted, Citi declined to comment.
On April 21, post a board meeting, the Board of Goodyear India disclosed that it had taken note of the communication “received from The Goodyear Tire & Rubber Co., USA, i.e. the ultimate parent company regarding their intention to conduct a review of the farm tire business of the Company to evaluate all strategic, operational and financial opportunities related to that business.”
At the end of day’s trade on July 24, the market cap of Goodyear India stood at Rs 2260.52 crore, with 74 per cent stake with promoter entity ‘Goodyear Orient Company’.
For FY24-25, Goodyear India registered a revenue of Rs 2,608 crore and net profit of Rs 55 crore, as per exchange data.
In late 2023, Goodyear announced a transformation plan called "Goodyear Forward", targeting approximately $2 billion in proceeds through portfolio optimization and $1 billion in cost savings by the end of 2025. The plan included strategic alternatives for its assets like its chemicals business, the Dunlop brand (later sold to Japan’s Sumitomo for $700 million), and off-the-road tire business.
The top five listed players in India by net profit in the tyre and rubber products segment include MRF, Balkrishna Industries, Apollo Tyres, CEAT and JK Tyres.
Birla Tyres, City Cat Tyres, Ascenso Tyres, Hindustan Tyre Co, TVS Srichakra , Ralco Tyres, Immortal Tyres and Poddar Tyres are some other players.
Key global brands include Michelin, Bridgestone and Continental Tires. Incidentally, as part of a strategic realignment, Continental Tires recently shut its truck and bus radial tire business in India due to cost pressures and is now focused solely on the passenger and light truck segment.
In recent M&A news in the sector, CEAT - an RPG company - and Michelin, a global tyre company, announced on December 6, 2024 a definitive agreement for CEAT to acquire Camso brand’s Off-Highway construction equipment, bias tyre and tracks business from Michelin in an all-cash deal valued at about $225 million.
Lens on Goodyear India
Goodyear India manufactures and sells farm and commercial truck bias tyres at its Ballabgarh plant. The company also markets and sells passenger car tyres which are manufactured by Goodyear South Asia Tyres Private Limited, Aurangabad, in the replacement market. Other products which the company markets and sells include tubes and flaps.
In its last annual report, the firm had highlighted the difficulties in the farm tyre segment.
“The Indian farm tire industry faced a series of challenges, including rising raw material costs, supply chain disruptions, and external pressures such as fuel price volatility and weak agricultural income. These factors contributed to slower growth and reduced demand for farm tires in certain segments of the market. However, despite these challenges, the industry showed resilience and registered growth of 3.8% in the Financial Year 2024-25 on Y-o-Y basis.”
Goodyear India elaborated “The Farm OE has seen a growth of 4 percent in the financial year 2024-25 on Y-o-Y basis. Financial Year 2025-26 looks positive, with continued growth in farm mechanization, supported by government initiatives and advancements in technology. However, challenges such as the affordability of equipment for smaller farmers and climate uncertainties remain. OEMs that focus on sustainability, innovation, and accessibility are well-positioned to capture the growing demand for farm machinery in India.”
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