Mysore, Sep 30:Falcon Tyres Ltd (FTL), owned by Ruia Group of Companies, has planned to double its export after completion of its ongoing expansion of plant that envisaged to produce 7.5 lakh two-wheeler tyres a month with its own electricity, company chairman Pawan Kumar Ruia said.
The FTL's 27 acre plant here is poised to produce six MW of electricity from its co-generation power plant, under construction with an investment of Rs 30 crore, by the year end.
Mr Ruia after attending FTL's 31st AGM in Bangalore on Friday told a group of visiting journalists in Mysore that the company was aiming to increase its profitability to about six per cent from three per cent mainly from exports under brand name, Dunlop Tyres, and by reducing the recurring cost.
The company has registered a turnover of Rs 3217.8 million in last fiscal as against Rs 2556.3 million in 2005-06 after the group acquired FTL in December 2005 and pumped in Rs 100 crore.
The group aims to make FTL as a Rs 600 crore company in near future, Mr Ruia said adding that besides tyres, the company produces four lakhs tyre tubes per month.
He said efforts were on to merge the FTL with Monotona Tyre ltd, a Mumbai-based subsidiary of Ruia group, to make the company a market leader in two-wheeler sector of the country.
The FTL currently produces 16 types of two-wheeler tyres and would soon have its own power generation unit of 6 MW, of which 3.5 MW is to be sold to Karnataka government. Presently, the company purchases power from the state.
''Once the power generation starts by end of this year, the company will not only reduce the cost by half from present Rs one crore in every month but also add fund to its coffer Rs 50 lakh every month.
The Falcon currently produces 6.2 lakh tyres every month and planned to increase it to 7.5 lakh tyres soon, of which about 10 per cent would be exported.
However, a target was fixed to double the export as the Falcon tyre market was soaring in overseas as well as in the country following technological upgradation in quality and quantity after inking a Technical Aid agreement with Japan-based Sumitomo Rubbber Industries.
The sluggish demand scenario for the two-wheeler tyre was set for a significant shift as the automobile industry had been experiencing an annualised growth of around 15 per cent.
Answering to a question, Mr Ruia said Dunlop's Sahaganj unit in Hooghly district of West Bengal was also poised to produce 130 tonnes of four-wheeler tyres a day by end of this fiscal from current 50 tonnes a day.
He said production of tyre in Bengal was going on full swing as sitatuion there improved rapidly after the company made an agreemnt with the unions to OTS (one time settlement).
''A draft for Rs three crore for workers wages was ready to be disbursed this week and another equal amount to be disbursed soon,'' Mr Ruia avered.
He also claimed there was no managment-worker problem at Sahaganj unit as alleged by some vested interested parties.
The compnay has made a target to produce 90 tonne of four-wheeler tyres by end of October.
Regarding other liabilities, Mr Ruia said the company was soon going to settle arrears of government taxes and electricity charges.