Indian Co. Starts on Vedic Foundation

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Dunlop may touch Rs 1000-cr turnover in 3 yrs

 

 

Thursday, 08 December , 2005, 08:50

 

Chennai: Pawan Kumar Ruia, Chairman of the Kolkata-based Ruia group

of companies, believes that it is possible for Dunlop to achieve a

turnover of Rs 300 crore in the first year of restarting operations

and Rs 1,000 crore in three years' time. Visiting Dunlop's Ambattur

plant three days after taking over the company, a beaming Ruia broke

a coconut at the gates - a South Indian tradition to ward off evil

spirits - and proceeded to the office rooms to perform a puja,

amidst vedic chants. Later, he told journalists that the Dunlop

brand was very much alive, but there were "hard days ahead and lot,

lot of marketing activity".

 

No need for outside tech: Ruia said that Dunlop did not need outside

technology, except for radial tyres, but would try to get back some

of the talent that had left the company in the past. He said that

Sumitomo, which owns the Dunlop brand in all countries except India,

had approached him for a joint venture for radial tyres. Discussions

were on, he said, as also talks for export of tyres under the Dunlop

brand name to neighbouring countries (where Sumitomo did not have a

presence).

 

Ruia said that buyers had paid around Rs 200 crore for both Dunlop

and Falcon Tyres. Dunlop has assets of around Rs 800 crore and

liabilities of Rs 600 crore. Did this mean that the Ruias got Falcon

Tyres for free?

 

In reply, Ruia said that was a wrong way of looking at it. He said

that although the assets were Rs 800 crore on paper, it was not as

if they could be encashed and liabilities paid-off with the

proceeds, because the assets comprised land and facilities needed

for operations. | Read more Finance news. |

 

Worli land worth Rs 120 cr: However, Ruia himself pointed out that

Dunlop's land at Worli, Mumbai, was worth around Rs 120 crore, which

could be sold off. Still, had the Ruias got themselves a good deal?

 

"It is not so simple," Ruia said, pointing out that no one would

sell cheap. Answering a question, he said he had no intention of

selling the Worli land.

 

Ruia said there was unauthorised use of the Dunlop name on various

products such as T-shirts, tennis racquet and balls, and that he had

asked officials to take "immediate action" against such trademark

infringement.

 

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