Dunlop's Sahagunj unit to reopen in early Nov

Kolkata, Oct 15: After a gap of more than six years, tyres would again roll out from the Sahagunj factory of Dunlop India Limited (DIL) from early November.

The factory would re-open for production in the last week of this month.

The Ambattur unit of DIL in Tamil Nadu already commenced production on August 27.

"The Sahagunj factory will commence production definitely by the end of this month," DIL Chairman Pawan Kumar Ruia said.

The Sahagunj factory in Hooghly would produce its usual line of cross-ply tyres including off-the-road (OTR) tyres and industrial products.

Kolkata based Ruia Group, which had taken over the majority stake of the DIL from the Jumbo Group in 2005, already spent Rs 150 crore from its internal accruals towards modernisation of both of its facilities and meeting past liabilities.

The group is also eyeing the sugar sector for the acquisition.

Mr Ruia said he was bullish about the sugar sector despite the prices easing in the recent months over expectations of high production.

"Something big is going to happen in the sugar sector now. I have big plans for the sugar sector," he mentioned. A sum of Rs 150 crore has already been earmarked for the acquisition. Mr Ruia currently owns Kamlapur Sugar in Uttar Pradesh.

The group has also finalised its operational restructuring plan for its group of companies and would have three holding companies for its three areas of business - heavy engineering and infrastructure, tyre business and sugar and allied industries.

Jessop and Company Limited, Hirakud Industrial Works, Idcol Rolling Mills, Pallavi Manufacturers and the proposed shipbuilding unit will be brought under heavy engineering and infrastructure group.

While, Dunlop India and Falcon Tyre and other tyre units would be under tyre business group, Kamlapur Sugar and Industries would be under the sugar sector.

Meanwhile, Mr Ruia expects to resolve the land issue with the state government in next three months for its shipbuilding project near Haldia.

"Our need was for 2,000 acres but unless we get 1,000 acres the project will not takeoff. Even on 1,000-1,200 acre area, only shipyard will come up but other associated projects may have to be shelved," Mr Ruia added.

A SPV would be created for the project where Jessop would be one of the partners.

UNI