Kolkata: Tyre maker Dunlop India Ltd will invest around Rs1,000 crore over the next couple of years to raise production capacity. The company will build a new factory near Guwahati in Assam, and set up a new production line at its Sahaganj factory in West Bengal.
The factory in Assam, which is estimated to cost Rs400-450 crore, would be commissioned in one-and-a-half years, said Dunlop chairman P. K. Ruia in Kolkata on Tuesday. The company has already acquired a 60-acre plot for around Rs4 crore. The new factory, which will be jointly owned by Dunlop and other companies managed by Ruia, will have a production capacity of 50 tonnes per day. It would be manufacturing truck radials and earthmover tyres - called OTR (off the road) tyres in technical parlance. Alongside, Dunlop will be spending Rs500-600 crore on setting up a new production line at its Sahaganj factory to manufacture earthmover tyres.
Addressing a press conference after the company’s annual general meeting, Ruia revealed Dunlop would be signing an agreement with a foreign tyre maker for sourcing technology to manufacture truck radials.
”We will get the agreement done in 15-20 days,” said Ruia. The company is also set to sign a similar agreement with Sumitomo Corporation of Japan for manufacturing passenger car radials. Though it would source technology from other manufacturers, Dunlop would be using its own brand for both passenger car and truck radials, Ruia added.