The Kolkata-based Ruia Group is currently eyeing sick public sector company, Tyre Corporation of India (TCI).
SAHAGUNJ/WEST BENGAL: After successfully taking over ailing private tyre major Dunlop India, Kolkata-based Ruia Group is currently eyeing sick public sector company, Tyre Corporation of India (TCI).
“We have approached for a takeover of TCI because it would consolidate our tyre business which we have ventured through the takeover of Dunlop,” Ruia Group chairman Pawan Ruia told reporters at the sidelines of the re-opening ceremony of Dunlop’s Sahagunj factory.
However, he admitted that the takeover of TCI would not be an easy task, since it has already been referred to BIFR and the process might take some time. “In the meantime, Dunlop has signed an agreement with TCI under which the later would manufacture 15,000 Dunlop-brand truck tyres every month for us. In the initial stage, the production capacity of Dunlop’s Sahagunj factory would not be enough to meet the market demands. Hence we have entered into such an agreement with TCI,” Ruia said.
He said that the initial production capacity of the Dunlop’s Sahagunj factory would be 20 tonnes per day, which will be increased to 130 tonnes per day within the next four months.
However, despite announcing the reopening of the factory, the Dunlop management is yet to withdraw the suspension of work notice. According to him, the management would first give a notice for partial withdrawal of suspension of work, since all the required staff would not be required from the very beginning.
“The notice for partial withdrawal of work suspension would be served within a day or two,” Ruia said.
He said that the existing staff strength of Dunlop’s Sahagunj factory is slightly over 2,800, of which he would be able to absorb around 1,200.
“The remaining would be offered voluntary retirement scheme, which is being currently worked out. However, as the factory would expand and the production capacity would increase, I will give them the first chance to join back,” Ruia said.
West Bengal chief minister Buddhadeb Bhattacharjee offered all assistance including relaxation for recovery of electricity and municipality dues to give the present management the flexibility to turnaround the company.
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