Continental, the German manufacturer of tires, brake systems, vehicle stability control systems and other parts for the automotive and transport industries has acquired Rico’s 50% share in the joint venture Continental Rico Hydraulic Brakes India, giving it full ownership of the subsidiary.
Continental Rico Hydraulic Brakes India Private Limited is now entirely a Continental Group held Company. The aforementioned divesture has been completed in accordance with the pricing guidelines issued by the Reserve Bank of India, Continental said.
Rico and Continental had formed the equal equity JV in 2007 to build a hydraulic brake systems plant in India in a two-step approach. Rico Hydraulic Brakes produces calipers for front and rear axles, drum brakes, master cylinders, brake boosters and load sensing proportioning valves for vehicles of all classes.
Continental country head in India Claude dGama Rose said the acquisition reinforces the company’s commitment to the Indian market.
“We have strong growth plans and we will continue to invest in both development and manufacturing to introduce future technologies to this lucrative market, both in our Automotive and Rubber businesses in India,” Rose said.