At the Sahagunj factory, the entire range except aero-tyres and industrial rubber products will be manufactured.

This time the unit is being reopened under a new management, the Kolkata-based Ruia Group, which had acquired Dunlop from Jumbo Group in December 2005.

Dunlop India chairman Pawan Kumar Ruia has said the company hopes to start production of industrial rubber products like belts and hoses at Ambattur also. Initially, OTR, truck tyres and light commercial vehicle tyres would be the main focus areas for Dunlop India.

Ruia said restarting of production at the two factories would involve a working capital expenditure of Rs. 1,000 million and a capital expenditure of Rs. 1,250 million.

According to Ruia, OEMs, replacement segment and exports segment have shown keen interest in Dunlop’s products. Importers from about a dozen markets have already initiated talks in this regard.

Industry sources say that Mr. Ruia has held talks with Dunlop UK and Sumitomo, Japan, for technical tie-ups to make aero, two-wheeler and three-wheeler tyres.

Also in the pipeline is a greenfield project for the Rs. 2,500-million Falcon Tyres for making two-wheeler and three-wheeler tyres.