Ruia signs agreement with Tyre Corpn, plans to take over MAMC

Kolkata, Oct 31 (UNI) Dunlop India Limited, once the tyre maker of international repute, at last has seen the light at the end of the tunnel with today's reopening of its Sahaganj factory after a gap of over five years and has also joined hands with public sector Tyre Corporation of India (TCI).

Dunlop India Chairman Pawan Ruia told newsmen at Sahaganj factory complex near here that under the agreement Dunlop would receive from the TCI 15,000 heavy truck tyres every month with the former's brand name for sale in the highly competitive domestic auto component market.

" Dunlop has very recently signed the agreement with TCI for receiving 15,000 heavy duty truck tyres from them every month till the Dunlop resumes its full production by next year, " he said.

Refusing to divulge futher details of the agreement because of some legal tangle, Mr Ruia, however, made it clear that he was very interested in the "ultimate acquisition" of TCI provided necessary permission was received from the state government since TCI unlike Dunlop was a public sector undertaking.

But he said as per the present agreement TCI would start supplying Dunlop-branded truck tyres, to be in turn distributed by Dunlop for countrywide sale in order to popularise the product in a highly competitive market.

Regarding his plan for acquisition of TCI, Mr Ruia said they had already submitted his proposal to the state governmentm expressing Dunlop's interest in participating in the bid through proper channel.

" Since the Indian tyre industry is heading for a boom in the wake of stupendous growth in the auto industry, there will be an urgent need for consolidation of the Indian tyre industry in near future, " Mr Ruia said adding the process was, however, far from being materialised.

About his plan for taking over the Durgapur-based engineering giant Mines and Minerals Corporation(MAMC), as announced by Chief Minister Buddhadeb Bhattacharjee earlier during the reopeing ceremony of Dunlop, Mr Ruia felt that it was necessary as "it fits well with the production line of Jessop", another engineering giant, which was also taken over by Mr Ruia about three years ago and successfully turned around.

He, however, categorially ruled out the possibility of using the huge additional and unused land of the MAMC for real estate purpose.

" I have no such plan except to revive MAMC and merge it with Jessop for another turnaround, " Mr Ruia stated.

Regarding his plan for Dunlop India having its two units at Sahaganj in West Bengal and Ambatoor in Tamil Nadu, reopened on August 19, 2006, Mr Ruia said since the takeover he had spent about Rs 160 crore for their revival.

" I ahve planned to spend a total amount of Rs 450 crore, both from internal accruals and Bank loan, for the restructuring of both plants, purchase of new machineries and their total mechanisation within the next few months so that the company could reach its production target of 130 ton a day in each plant, " Mr Ruia said to a specific query.

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