Dunlop India rolls out its first tyre after long eight years

Kolkata, Jan 14 (UNI) After nearly eight years of closure, the first tyre was today rolled out from Dunlop India's Sahaganj factory in Hooghly district thereby ending all speculations of the 473 people, who were reemployed in the refurbished unit.

The Sahagunj factory of Dunlop India was made for the production of only "Off The Road" (OTR) tyre and those for the Light Commercial Vehicle (LCV).

The first tyre was rolled out today after nearly four hours of intermediatery process during which it had to undergo as many as 16 tests.

Addressing the newsmen, Chairman and Managing Director of the unit Pawan Kumar Ruia, who had purchased the closed Dunlop India's both plants at Sahagunj and Ambattur in Tamil Nadu at a cost Rs 250 crore in 2005, said initially the production at the Sahagunj factory was 27 ton per day and it would gradually be taken to the targetted 130 ton capacity per day by March, 2008.

Regarding the turnover and his other future plans to help bring back the past glory of the company, which was once built as the premier tyre manufacturing unit in the whole of Asia, he said though he was expecting to end the current fiscal with a turnover of only about Rs 55 to 60 crore with a production of around 27 ton per day each in both factories by March next year, he was confident of reaching the turnover target of Rs 1300 crore with the production capacity reaching its ultimate at 130 ton each per day.

Mr Ruia said though the market for the OTR tyre was readily available with both Coal India and other heavy machinerie users agreeing to place huge orders, he had no plan to start the production of radial tyre in the next three to four years primarily because of not having the necessary technology for this purpose.

" May be after three to four years we might consider for the production of radial tyres, particularly aviation tyres which are also of great demand, " he added.

However, regarding his plans for aviation tyre, he said they were looking for availing the state-of-the-art technology at the earliest so that they might consider the option.

Commenting on his plan to reopen the Ambattur factory after it faced closure within two months of restart of operation because of the controversy with Tamil Nadu State Electricity Board for the payment of electricity bill with much higher charges, he said the controversy had already been sorted out and they were expecting to reopen the factory and start production of car tyres there from January 17 itself.

As many as 800 people had so far found employment in Ambattur factory, he stated.

He said they had already submitted fresh revival package of Rs 600 crore to the BIFR and was expecting a green signal from them very soon.

" Once we are out of BIFR, we could apply to the Stock Exchanges for relisting our names and could raise further fund from the market for the smooth running and further modernisation of both plants, " he informed.

He also said so far Rs 202 crore had been invested by him for the reopening of Sahaganj and Ambattur factory.

He said Dunlop India had already entered into an agreement as part of new marketing strategy with Tyre Corpoaration of India under which the latter would supply about 15,000 tyres every month under Dunlop brand name to help capture both domestic and international markets.

" We are expecting to receive the first consignment from TCI within the next couple of months, " he said and added that had the Asmbattur factory continued its production, they could have reached the tragetted annual turnover of Rs 350 crore by March this year.

Mr Ruia said primary raw material of rubbber would be supplied from Tripura for the Sahagunj plant and for the Ambattur plant from Tamil Nadu itself.

UNI