Closure of Dunlop unit is unfortunate, says Mrinal

Economy Bureau
Posted: Tuesday, Dec 02, 2008 at 0214 hrs IST
Updated: Tuesday, Dec 02, 2008 at 0214 hrs IST

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Kolkata: financial downturn came as an opportunity for Ruia to declare suspension of production and thereafter suspension of work. The financial downturn, however, did not affect the Indian mining sector, to which the major chunk of Sahaganj's production, off the road tyres (OTRs), are meant.

According to Dunlop officials, owing to lack of market for Dunlop-brand OTRs, production was curtailed. Overhead costs (salaries not exceeding Rs 6 crore per month) too had mounted pressure on the working capital.

Dunlop chairman Pawan Ruia has put March 31 as the deadline to commence production at Sahaganj once again. Officials, however, said that the management was eager to re-start production in January itself, if it could arrange for a working capital of Rs 100 crore.

Ruia, while announcing the suspension of work, had said that Rs 300 crore working capital would be needed to resume production....

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