25. November 2005

INDIA: Ruia group close to clinching Dunlop buy

Source: Daily 'The Hindu Business Line', New Delhi; 25 Nov 2005

Kolkata, 24 Nov 2005 The Ruia group Chairman, Mr Pawan Kumar Ruia, said on Thursday that the group is nearing its acquisition of a controlling stake in Dunlop India Ltd, Falcon Tyres and its wholly-owned subsidiary India Tyre. "The financial part of the deal is through. The legal part is still being negotiated and will involve more than one country," he said, declining to say anything about the amount involved. "The entire deal is expected to be closed in 15 days to a month," he added. The deal is being negotiated through Ambit Finance. Mr Ruia said the company would be acquiring 59 per cent stake of the Jumbo group's stake in Dunlop to begin with and the remaining 16.7 per cent, held by some associates, would be acquired through a special offer to pick up the entire promoter's stake of 76.48 per cent. In Falcon, however, the company would straightaway be picking up the entire 81.86 per cent stake of Jumbo. Talking about the absorption of the existing employees of Dunlop, he said the company's biggest facility at Sahagunj, West Bengal, had 2,700 people on the payroll. "Unlike what we did in Jessop where the number of workers was relatively small, in Dunlop we will go for a phased absorption route depending upon the requirement." The revival of the Ambattur facility in Chennai would be relatively easy as the existing Dunlop management there had an agreement in place for absorption of labour force as per requirement. (Syed Rashid Ali, Karachi, Pakistan)

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