Embarking on a second venture in entrepreneurship comes with a smoother path, yet it requires a deep understanding of the evolving market and a commitment to adding relevant value to the product, according to Yogesh Mahansaria, managing director of Mahansaria Tyres Pvt Ltd, who stressed the importance of staying current with market dynamics.
“The market is dynamic and changes every day…you must take the effort to bring yourself up to speed,” Mahansaria advised during his address at the Mint India Investment Summit 2024.
After a decade-long innings at tyre manufacturer Balkrishna Industries, Mahansaria ventured into entrepreneurship in 2007.
Backed by private equity firm Warburg Pincus, he acquired Alliance Tire Group, an Israel-based maker of off-highway tyres, in 2007. In April 2013, KKR bought out stake held by Warburg Pincus and Alliance Tire Group was acquired by the Japanese Yokohama Rubber Company in July 2016.
“When you start building something, exit is not on your mind, or it should not be on your mind. The focus should be on building a great business that can sustain over time. In 2007, we focused on how to build a stronger business and we grew it to size and scale. When we were approached by Yokohama, it was the right time for the company to have a permanent home,” he added.
Spotting the potential in India’s off-road tyre market, Mahansaria re-entered the sector after a three-year non-compete clause with Yokohama. He has since initiated two ventures, Mahansaria Tyres Pvt Ltd (MTPL) and SYAM Trelleborg Tires LLP (STTL), aiming to seize manufacturing opportunities in the tyre industry.
The year 2022 saw the debut of Reise Moto, a division of the Mahansaria Group, entering the two-wheeler segment with a range of motorcycle and scooter tyres designed for both off-road and on-road performance.
“Had we gone into a new business line, we would have a longer learning curve but shorter than first-time entrepreneurs. Many of the challenges that entrepreneurs face in a business are sector-agnostic such as finance, human resource etc. There is an advantage in finding capital as investors have seen your track record,” Mahansaria said.
To achieve a sophisticated product range at the front end, Mahansaria leveraged India’s competitive cost and engineering capabilities. He believes that a strong management team and significant capital infusion are crucial for quickly scaling a company. “We are trying to do significantly larger things than earlier,” he said, noting the growing international acceptance of India as a reliable partner and high-quality goods and services producer, despite increasing global protectionism.
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Published: 30 Mar 2024, 05:50 PM IST