ATG was established in 2007 and is a privately held company. ATG acquired Alliance Tire Company Israel (Alliance Israel) in 2007 and commenced the construction of its first Indian manufacturing facility in 2008. ATG is promoted by private equity firm Warburg Pincus, which has a majority stake in the Company and Mr. Ashok Mahansaria and his son, Mr. Yogesh Mahansaria.

The Project cost is estimated at US$160 million. IFC proposes a financial investment of up to US$65 million for its own account and will try to mobilize additional funds to finance a part of the expansion.

60.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity	10.0

* These investment figures are indicative

The greenfield facility will be located near Jhagadia in Gujarat, India, in close proximity to the port of Hazira. The Project also involves the brownfield expansion of the Company’s facility in Tirunelveli, Tamil Nadu.

1. Technology transfer and enhancing India''s competitiveness: Innovation and technological ability are critical to the development of off-highway tires, a high-value niche segment of the global tire industry. The Project will increase the competitiveness of the Indian OHT manufacturing sector as a result of shared R & D and technology between ATC India and its associate companies, Alliance Tire Company Ltd., Israel and Alliance Tire Americas Inc., USA.
2. Employment generation: The Project will create direct employment for about 850 people. ATG is committed to developing and strengthening its employees'' technical expertise and engineers from each of its Israel and India facilities are often sent to the other location to conduct training. In addition, the Project will create temporary employment during its construction phase.
3. Agricultural productivity: Almost 60% of ATG''s sales are to the agriculture equipment sector, where increasing productivity is critical to meet increasing food demand. ATG invests significant resources in its research and development and conducts extensive testing to ensure its tires are designed to increase the productivity of the equipment on which they are used.

1. Mobilization: IFC will try to mobilize additional debt financing required for the Project.
2. Provision of long-term US Dollar funding: Given that the construction and ramp-up phases of the Project are relatively long, appropriately structured debt is required to finance the Project. IFC will provide US Dollar loans with the required tenor (of up to 11 years) and grace period, which are otherwise difficult to obtain in the current economic environment.
3. Standard setting: IFC''s involvement will strengthen ATG''s environmental and social development policies and procedures, which in turn will promote sustainable investment practices.
4. Long-term investor: IFC''s investment will help attract other potential investors especially when the Company goes public.

This is a Category B project according IFC’s Procedure for Environmental and Social Review of Projects.

Environmental and social impacts associated with this Project include: adequate social and environmental assessment of the impacts of the Project during both construction and operations; the Company’s capacity to manage its social, environmental, health and safety performance, and engage with local communities in accordance with local requirements and IFC Performance Standards and EHS Guidelines; assurance of fair, safe and healthy working conditions during construction and operations; utilization of equipment and operational practices that maximizes conservation of energy, water and process materials including recycling and reuse initiatives; management of air emissions, wastewater treatment and discharge, and solid and other waste disposal; handling and management of hazardous materials and hazardous wastes; the impacts of operations on local ambient air quality, and impacts on transport infrastructure during construction and operations.

Further details on the potential environmental and social impacts of the project, corresponding mitigation measures and guidance on how and where information about the project are provided in the Environmental & Social Review Summary.