The Hindu Business Line : Dunlop Board restructured

The reason behind Ms Wazir's and Mr Goel's resignation from the board is not yet known. They have also quit the shareholders'/ investors' grievances committee. The new shareholders' grievance committee has been reconstituted comprising Mr Balakrishnan, Mr Kothari and Mr Ram Gupta.

A DIL source said that based on records available with the company, including those brought from the erstwhile registered office (which has since been sold), the management has already commenced redressal of the outstanding grievances of the shareholders/debenture holders/fixed depositors and investors and has already cleared a " substantial" part of pending/outstanding grievances (a total 2,346 cases up to June, 2004).

The management has targeted the clearance of 300 more cases as early as possible subject to availability of relevant records.

The key strength of DIL is its brand name. The DIL management fears that the continued closure of the company's two factories, one at Sahaganj in West Bengal and the other at Ambattur in Tamil Nadu, may erode the brand pull gradually and may force customers to switch over to the products of competitors.

It is pointed out that the recent trend of the tyre industry appears to be positive vis-à-vis the re-commencement of operations from the company's two factories.

This is so despite the rise in cost of major raw materials such as rubber, fabric, carbon black during the year under review.

But with continued suspension of operations at the company's units at Sahaganj and Ambattur, there is continuous deterioration to plant and machinery, thus eroding the company's wealth.

The DIL management has stressed the need for an early approval of a rehabilitation package from the Board for Industrial and Financial Reconstruction (BIFR) or from Appellate Authority for Industrial & Financial Reconstruction (AAIFR).

Incidentally, DIL was declared a " sick industrial company " by BIFR in June, 1998. The first draft of the rehabilitation scheme was placed before BIFR by the then Operating Agency (OA) in 1999. Subsequently, because of the delay on the part of BIFR in finalising a scheme, the management approached AAIFR to expedite the process. The last hearing was held on May, 2003. Since then, no hearings have been possible due to the absence of the Constituted Bench from June, 2003 to March, 2004. The next date of hearing by AAIFR on the issue of finalising a scheme has been fixed for October 11.