Chairman of Falcon’s parent Ruia group, P.K. Ruia, has stated that Sumitomo will provide know-how for the production of tyres for two-wheeled vehicles.

According to Mr. Ruia, the agreement will provide assistance for everything from improving production processes through to the introduction of tubleless and other technically advanced tyres. He said although the brand had to date focused upon the OE segment, the current sluggish growth in OE demand might force the company to increasingly look at the replacement market.

Falcon Tyres finalised its 2006-07 results at its board meeting on June 28, and have reported an increase in dividend from 25% to 30% for the year. This follows an increase in turnover from £312.9 million £393.9 million. The company’s net profit improved from £4.4 million to £4.8 million.