The Pawan Ruia group has finally come out with an open offer for Dunlop India and Falcon Tyres following its indirect acquisition of these two outfits from the Jumbo group in December 2005.
Ruia, a chartered accountant whose business ranged from sugar to textiles and heavy engineering to tyres, refused to comment on queries about his interest in Air India.
The factory located in Ambattur Industrial Estate, which became sick in 2001, under the Manu Chabbria-led management, has been taken over by the Kolkata-based Ruia group which finalised agreements with workers.
The performance of his business has moved in tandem with his connections to the ruling party.
Industrialist Pawan Ruia's (think Dunlop and Jessop) arrest this month for cheating and criminal breach of trust marked a new low, but the tide had been turning against him for a while now. Ishita Ayan Dutt & Avishek Rakshit report.
The high court in Kolkata has ordered winding up of the Pawan Ruia group's tyre maker, Dunlop India, directing the official liquidator to take possession of all the company's assets and books of records.
A group spokesperson declined to comment on the size of the forthcoming deal. The market capitalisation of the company is $400 million (Rs 1,840 crore).
Dunlop India of the Pawan Ruia group has submitted a Rs 600 crore (Rs 6 billion) draft rehabilitation scheme to the Board for Industrial and Financial Reconstruction for the revival of the ailing outfit.
The Ruia group, which had taken over ailing companies like Jessop and Dunlop India for turnaround, is also eyeing the sugar sector.
Following the takeover of ailing tyre maker Dunlop India Ltd by Ruia group, three directors of the company have resigned while reconstitution of the board would take some time, chairman of the group P K Ruia said.
Engineering goods major Jessop & Co Ltd, acquired by Ruia Cotex, is planning another round of financial restructuring to wipe out the entire accumulated loss of Rs 110 crore.
Ballooning debt forces more and more Indian promoters to sell out to global majors and PE players.
All of these companies are present in India.
Getting the first tyres out from the Sahaganj plant will still require a lot of effort, but with the state government on its side, the hopes are high.
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