Modi Rubber Ltd has sold its entire 7% stake in Xerox India Ltd to The Netherlands-based Xerox Investments Europe BV for Rs 25.09 crore (around $3.8 million), the company said in a stock exchange filing.
Xerox India and Xerox Investments Europe BV are subsidiaries of US-based Xerox Corporation. As on 31 March 2016, the promoter group entities Xerox Ltd, XC Trading Singapore Pte Ltd and Xerox Developing Markets Ltd together held 89.29% stake in Xerox India.
Established in 1971, Modi Rubber was originally an automobile tyre and tube manufacturing firm. In July 2011, the company sold its fully-owned subsidiary Modi Tyres Company Ltd to German tyre maker Continental AG for Rs 135 crore which included a non-compete fee of Rs 17.23 crore.
In November 2012, Modi Rubber formed a joint venture with Japan’s Asahi Organic Chemicals Industry Co. Ltd to set up Asahi Modi Materials Pvt. Ltd. Asahi Modi Materials is involved in the manufacture of resin-coated sand used by automotive and non-automotive original equipment manufacturers in the Indian and overseas market, according to its website.