KOLKATA, India (Dec. 16, 2005) — Ruia Group, a privately held textiles and engineering enterprise, has bought a controlling stake in Indian tire makers Dunlop India Ltd. and Falcon Tyres Ltd. with the intention of restarting Dunlop India's two idled plants within a year.
Kolkata-based Ruia took over the ownership stakes in Dunlop India and Falcon from Jumbo World Holdings, a Dubai-based diversified conglomerate that had owned shares in the two Indian tire makers since 1984 and 1987, respectively. Jumbo owned 74.5 percent of Dunlop India and 68 percent of Falcon.
India media put the value of the transaction at about $44 million.
Dunlop India has been idled for most of the past four years, while Falcon Tyres is considered a profitable, ongoing concern making Dunlop- and Falcon-brand tires for two- and three-wheeled vehicles.
Ruia Group Chairman Pawan Kr Ruia was reported to have said he plans to reopen Dunlop plants at Ambattur/Chennai and Shahganj within six months to one year. Though idled for most of the past four years, the two plants still carry 1,100 and 2,700 employees on the books, reports said.
Mysore-based Falcon Tyres reported sales of about $43 million in fiscal 2004-05.
Jumbo Group said it decided to sell the units to concentrate on its electronics and computer-related businesses.