Kolokata Newsline reports that the companies have decided to invest in tyremakers to ward off a supply crisis in India.

BEML has already tied-up with CIL for providing 1 billion rupees (£11.4 million) each to Apollo Tyres and JK Tyres as a soft loan so that they manufacture dumper-truck tyres. According to the Kolkata Newsline, CIL needs to replace at least 2,696 tyres in 2006-07 and a total of 19,300 tyres by 2011-2012.

Dunlop sources told local news sources that preliminary talks have been held with the BEML management. Dunlop is looking for a tie-up with the BEML and CIL along the lines of the one with Apollo and JK, but it may also opt for an OE deal. BEML chairman V R S Natarajan told Newsline that although BEML’s demand for dumper-truck tyres is going to rise as it steps up capacity, it would not consider Dunlop until the tyremaker resumes full production.