India’s Economic Times newspaper has reported that the government plans to attract a partner that can provide both the latest global technology and pan-India product marketing support.
An official from India’s Ministry of Heavy Industries told the Economic Times: “The matter now lies with the Parliamentary Standing Committee on Industry for a final approval, after a bill (the Disinvestment of Ownership Bill, 2007), was introduced in parliament in May. As and when it is passed, we would move ahead with the revival of the sick unit, through the disinvestment route.”
The bill reads that “the Board for Reconstruction of Public Sector Enterprises has recommended for financial and capital restructuring of the Tyre Corporation of India and for looking for a strategic partner who would bring in new technology and further improve the profitability and market share of the company.”
TCI became officially classified as a “sick industrial company” according to India’s Sick Industrial Companies (Special Provisions) Act, 1985 a number of years ago, and in August 2002, the company’s Tangara industrial rubber division was closed, with its assets sold off. In November 2006, a number of high-profile figures publicly suggested that Pawan Ruia, a person viewed by many as India’s corporate turnaround wonder-man, take control of TCI.
At the time, Ruia stated he had approached India’s Ministry of Heavy Industry regarding acquiring the operation, adding that “small units like TCI cannot exist in isolation in a competitive world, and I feel that the company will be a perfect match for Dunlop.”
