The Goodyear Tire and Rubber Company, USA, has formally initiated the sale process for the farm tyre business of its Indian subsidiary, Goodyear India, and has appointed Citigroup (Citi) as the sell-side advisor. This significant development follows the global tyre giant’s broader transformation plan, announced in late 2023, titled "Goodyear Forward", aimed at portfolio optimization, generating $2 billion in proceeds and achieving $1 billion in cost savings by 2025.

According to multiple industry sources, the sale was launched earlier this week, attracting considerable interest from both strategic buyers and private equity players. The business unit in question has a strong presence in the Indian farm tyre market, and valuation expectations are hovering around $300 million.

In its strategic review earlier this year, Goodyear India’s board acknowledged a communication from its parent entity regarding a detailed evaluation of all strategic, operational, and financial opportunities concerning the farm tyre vertical. Goodyear India manufactures and markets farm and commercial truck bias tyres at its Ballabgarh facility and sells passenger car tyres manufactured by Goodyear South Asia Tyres in Aurangabad.

This sale comes amid a flurry of consolidation activity in the Indian and global tyre sector. In April 2025, CEAT announced the acquisition of Camso’s Off-Highway construction equipment bias tyre and tracks business from Michelin for approximately $225 million in an all-cash deal, marking a landmark transaction in the sector.

Citi Appointed as Advisor

Industry insiders confirmed that Citigroup has been roped in to oversee the divestiture, capitalizing on its experience in cross-border industrial transactions. The company hopes to leverage Citi’s advisory capabilities to reach a mix of strategic buyers and financial investors, including private equity funds that may explore joint ventures or buyouts.

Past transactions in this segment have been fruitful. For instance, in 2016, private equity major KKR exited Alliance Tire Group, selling its 90% stake to Yokohama Rubber for $1.2 billion, which was one of the most successful India-focused PE exits in the tyre industry.

Goodyear’s Strategic Pivot

Goodyear’s global reorganization under "Goodyear Forward" has already seen significant reshuffling. Key divestments include:

• The Dunlop brand, sold to Japan’s Sumitomo for $700 million

• The chemicals division, under strategic alternatives

• The off-the-road tyre business, slated for sale or restructuring

This divestment of the Indian farm tyre unit aligns with Goodyear's global priorities, allowing it to focus on more profitable verticals, especially in passenger and light truck segments.

Financial Snapshot of Goodyear India

At the close of trading on July 24, 2025, Goodyear India’s market capitalization stood at ₹2,260.52 crore, with 74% of the stake held by Goodyear Orient Company, the promoter entity.

FY24-25 financials showed:

• Revenue: ₹2,608 crore

• Net Profit: ₹55 crore

Despite facing headwinds like rising raw material costs, volatile fuel prices, and subdued agricultural incomes, the company posted a 3.8% year-on-year growth in the farm tyre segment. The Farm OE (original equipment) business itself grew by 4%, as per Goodyear India’s annual report.

The company expressed cautious optimism for FY25-26, citing government-backed mechanization drives, innovation, and sustainability trends as positive drivers. However, concerns over small farmer affordability and climatic unpredictability remain.

Rising M&A in the Tyre Sector

The Indian tyre sector has seen a surge in M&A activity, driven by strategic realignments and global capital movements:

• CEAT’s acquisition of Camso marks a significant expansion in the Off-Highway segment

• Continental Tires recently exited its truck and bus radial tyre business in India, focusing only on passenger and light truck tyres due to rising cost pressures

• PE funds are showing renewed interest in Indian tyre companies, as witnessed in earlier exits like that of KKR

Competitive Landscape

Top Indian tyre manufacturers include:

• MRF

• Apollo Tyres

• Balkrishna Industries

• CEAT

• JK Tyres

Smaller and niche players:

• Birla Tyres

• City Cat Tyres

• TVS Srichakra

• Poddar Tyres

• Ascenso Tyres

Global majors operating in India:

• Michelin

• Bridgestone

• Continental

This sale by Goodyear could reshape the competitive landscape, especially in the farm and off-highway tyre segment, with strong implications for market share dynamics.

Conclusion

The sale of Goodyear India’s farm tyre business is a strategic move aligned with its global transformation initiative. With Citi on board as an advisor, and an expected valuation of around $300 million, this transaction is set to be a key development in India’s tyre industry.

The move underscores Goodyear’s intent to prioritize profitability, streamline its operations, and reposition its global assets amid an evolving market landscape.

As the sale process gathers momentum, strategic bidders, PE funds, and industry watchers will keenly track how this divestiture unfolds—setting the tone for future consolidations and partnerships in India’s tyre sector.

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