Thaindian News

Kolkata, Oct 21 (IANS) Under pressure from the West Bengal government to reopen its Sahagunj unit, the Ruia group-owned Dunlop India limited Friday said it was prepared to do so in phases if the trade unions approved of this and power supplies resumed.

The company said “this is the last restructuring” it is doing and expressed confidence that “this package will go a long way to revive Dunlop India”.

Briefing reporters after a meeting of the company’s board here, group chairman Pawan Ruia said: “The board decided that the suspension of work will be lifted in a phased manner.”

He said the board decision had been conveyed to state Labour Minister Purnendu Bose, who asked the management to discuss the matter with the labour unions.

The management put up suspension of work notice at the factory gate in Hooghly district Oct 7 night, five months after a temporary shut-down in April.

About 800 workers are employed at the unit.

Ruia said once the West Bengal Power Development Corporation Limited resumed power supply — disconnected since August — the engineering team of the company’s industrial product division will start work.

The company applied to the power utility Friday for reconnection.

“After this, the Off-the-Road tyre manufacturing division will be opened and then tyre production will begin,” he said.

Ruia, however, said tyre production would be viable only after the company was allowed to set up a captive 50-MW power plant at the Sahagunj unit. He said environment clearance was awaited.

The Ruia group chairman said the company would also appoint a consultant to recommend the number of workers needed to run the IP and OTR divisions.

The company’s decision comes two days after the state government said it would approve a relief undertaking only after the management reopened the factory and took measures to run the plant.

Talks between the company and the state government failed to make any headway Oct 10, even as the government asked the company to immediately withdraw its suspension of work notice.

The company has alleged anti-social activities and vandalism by a section of workers, exorbitant conversion cost, hefty increase in raw material prices without corresponding increase in tyre prices, continuous losses and cash crunch for its inability to run the factory.

It also demanded the benefit of relief undertaking from the state government.

Dunlop, which the Ruia Group acquired in 2006, has two plants — at Ambattur near Chennai and Sahagunj. While the Ambattur plant is operational, there has been no production in Sahagunj plant for the last ten months.

Stating that Sahagunj unit still had the potential to be a viable unit, Ruia Friday said he was very confident of this “revival package” that this would go a long way in reviving Dunlop India.

Asked how long the group would continue with the plant, the chairman said, in case he failed in this effort of revival, it would be the last.