The Hindu Business Line : Dunlop in talks with global majors for product-specific tie-up

, DUNLOP India has initiated discussions with some global majors for product-specific technology tie-up. A broad collaboration arrangement may also be worked out with Sumitomo Corporation, which owns the Dunlop brand globally. Previously, Dunlop had such arrangements with Sumitomo, which is a major player in both the radial and cross-ply tyre segments.

According to sources, Dunlop India management is scheduled to meet a German major on January 28 to discuss the possibility of collaboration for rubber chemicals. Germany is a dominant player in the rubber chemicals segment, which is an important input for tyre manufacturing.

The company Chairman, Mr P.K. Ruia, said the company might approach Sumitomo for execution of some export orders available with Dunlop. According to sources, the export initiative may be taken to sort out a dispute with the Directorate-General of Foreign Trade (DGFT) for unfulfilled export obligations of the past.

Industry sources, however, revealed that following the closure of Dunlop, the erstwhile promoter of the company, the Jumbo group, had worked out an umbrella collaboration agreement with Sumitomo through Falcon Tyres. Though Falcon was manufacturing only two- and three-wheeler tyres, the draft agreement covered the entire range of products, including passenger car radials. The agreement, however, could not be executed because of the Jumbo group's exit from the tyre business.

"The draft agreement was comprehensive and was due to be formally signed," an industry insider said, adding that in all probability the agreement would be revived by the present promoters.

Mr Ruia said Dunlop was not considering investing on manufacture of car radials at this juncture. It may be mentioned that Dunlop rolled out radials way back in 1984. However, the product failed to make any headway in the market and was later withdrawn.

"Dunlop will be reopened with truck-bus tyres, off-the-road tyres and industrial products. While truck-bus tyres will be produced at both Ambattur and Sahagunj, OTR and industrial products will be produced from Sahagunj," Mr Ruia said.

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