Steinmetz said with a strategic stake in MRL, Continental may consider bringing in its own management concepts into the company. The last date for submitting the bids is November 5.

Having a stake in MRL would be part of the German tyre major's new strategy for India. The company is already in talks with Apollo Tyres for picking up a stake in the company. Steinmetz said Continental is in the process of re-orienting its India-strategy. "India is a very important market for the future and we want to be a leading player in this market," he said. As part of the new strategy, Continental may not take the export-oriented route as has been the practice with the company till now, he said. Following this route Continental has entered into technical tie-ups with several Indian tyre makers including Modi Rubber, Apollo Tyres and JK Tyres.

Steinmetz said Continental will be able to firm up its new-look India strategy only by January 2000. Continental was earlier in talks with Modis for acquiring their stake in MRL. However, talks between the companies got stalled following FIs inviting bids in September for divestment of their 44 per cent equity stake. The Modis hold about 25 per cent stake in the company and do not meet the criteria laid down by the FIs for the bidders. FIs including Unit Trust of India, Life Insurance Corporation, General Insurance Corporation, Industrial Finance Corporation of India and Industrial Development Bank of India jointly hold 1.10 shares (nearly 44 per cent) of the company.