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Pratim Ranjan Bose

Birla Tyres is the only other co that has a facility in the region

Kolkata , Aug. 18

Dunlop is in an advanced stage of negotiation for OE supplies of its tyres to Tata Motors. While the talks are primarily concerning supply of truck-bus tyres, industry sources said that Dunlop is also actively exploring opportunities for OE supply to Tata Motors upcoming passenger car project in West Bengal.

Incidentally, the Sahagunj facility of Dunlop and the proposed car project of Tata Motors at Singur are both located in the Hoogly district in West Bengal. The Sahagunj facility of Dunlop India is slated to resume production by September-October this year, Tata Motors project is scheduled to be commissioned in 2008.

Apart from Dunlop, run by Mr P.K. Ruia, the only other tyre manufacturing facility in Eastern region belongs to Birla Tyres at Balasore in Orissa.

While both Dunlop India and Tata Motors have declined to comment on queries related to OE supplies, sources said discussions are at an advanced stage on the truck-bus tyres and Tata Motors may pick up to 60 per cent of the total production by Dunlop.

Negotiations on the car tyres are, however, yet to reach a definitive stage.

The marketing issues have gained relevance as Dunlop Ambattur facility is slated to resume production on August 27.

According to a company official, the facility, modernised at the expense of roughly Rs 25-30 crore on plant and machinery, would initially produce 40 tonnes of truck-bus tyres, to be ramped up to 130 tonnes in next few months.

"We are expecting the first batch of tyres to hit the market in the first week of September", the official said. About Sahagunj, the official said that maintenance and modernisation work was going on in full swing and the production was expected to resume within two months.

More Stories on : Outlook | Tyres | Tata Motors Ltd

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