Private company buys Dunlop India, Falcon Tyres

Kolkata, India -- Indian papers are full of reports that the privately-owned and unlisted company, Ruia Group, has bought a controlling stake in two Indian tyre-making companies and a third tyre trader from the Dubai-based Jumbo Group, for about Rs 2000 million (Euro 37 million).

The three companies are Dunlop India, Falcon Tyres and India Tyre, which is a trading company. Jumbo, controlled by the Chhabria family, said it wants to concentrate on electronics and computer-related businesses. The deal was reportedly signed in Singapore on Friday.

In an official statement, Jumbo World Holdings said, The Jumbo group has divested its interest in the tyre and rubber business in India to the Kolkata-based Ruia group,” Jumbo held 74.5 per cent in Dunlop and 68 per cent of Falcon. Jumbo also recently sold a drinks business to another Indian company.

Indian press reports say that Ruia intends to bring the tyre-making operations of Dunlop India back on stream in a one- to two-year timecale. During a press conference, Ruia group chairman Pawan Kr Ruia was reported to have said that he plans to reopen Dunlop plants at Ambattur in Chennai and Shahganj near Kolkata within six months to one year. Over the weekend, Ruia visited a number of Dunlop India's factories and told employees and reporters that the Dunlop India factory in Ambattur could be re-opened in six months, while the factory in Sahaganj, West Bengal could be operational ion less than a year.

The Ambattur plant reportedly still has 1100 employees on its books, while the Sahaganj plant theoretically employs 2700. Negotiations with the unions representing these employees are underwat and Ruia is reported to have said that negotiations at Ambattur are nearly complete.

Falcon makes two- and three-wheeler tyres at its factory in Mysore, and is said to be profitable.

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Press release from Jumbo

Ruia visits Sahagunj, kindles workers' hopes Hindu Business Line (India)

Ruia talks with Dunlop unions Press Trust of India (India)

Ruias plan Dunlop revival in 2 yrs Sunday Express (India)

Ambattur plant to re-open in 6 months Deccan herald (India)

Dunlop's Sahagunj unit may restart soon Sify (India)

Indian businessman buys Jumbo Group tyre unit The Peninsula (Qatar)