The Hindu Business Line : Ruia in talks to buy ailing Tyre Corp

Mr P.K. Ruia, Chairman of Ruia Group, is negotiating for acquisition of the ailing Union Government undertaking, Tyre Corporation of India (TCI). A BIFR company, TCI has a tyre manufacturing facility at Kankinada in West Bengal.

He is also continuing its negotiations for the closed facility of Mining and Allied Machinery Corporation (MAMC) in Durgapur. The company has already gone under liquidation and is subjected to several litigations.

Addressing the inaugural ceremony of Dunlop India Sahagunj facility the Chief Minister, Mr Buddhadeb Bhattacharjee, said that the State Government had already taken up the case with the Union Heavy Industries Minister, Mr Santosh Mohan Dev. Mr Dev who was also present at the inaugural ceremony, expressed his interest in reopening of MAMC.

"The State Government will do everything possible to revitalise both the facilities. We are following up the issue closely with the Centre and especially Mr Dev," the Chief Minister said. He added that his Government was already working on Mr Ruia's proposal to build ship-repairing facilities near Haldia.

Later talking to presspersons Mr Ruia said that his group had been negotiating for acquisition of both the companies for sometime. While negotiation for TCI was initiated a few months back the company had already submitted a revival proposal for MAMC to the State and Central governments.

"The State Government has a ready plan for developing the township area of MAMC. However, we are interested in the manufacturing facility, which has synergy with the hydraulic division of Jessop & Co Ltd."

TCI, on the other hand, has limited tyre manufacturing capacity, which is not adequate for survival in today's competitive scenario. However, the combined strength of Dunlop and TCI would make it a significant player in the tyre market in the Eastern region.

Reopened today with 202 employees, Dunlop would absorb another 130 existing employees in next two to three days. The initial production is estimated at 20 tonnes, which would include primarily truck-bus and OTR tyres. Dunlop has already submitted a Rs 550-crore revival proposal to BIFR.

More Stories on : Sick Units | Mergers & Acquisitions | PSU | West Bengal

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