Dunlop can be revived by Ruia

Dunlop Management Is Cash Rich

Dunlop Management Is Cash Rich
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Dunlop can be revived by Ruia

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Dunlop can be revived by Ruia

Attempts to Revive the Company


In The News for Wrong Reasons

Dunlop has been in the news various times in the past for wrong reasons. Dunlop has always suffered because of labour trouble and management problems. Many times the company was closed in the past. The current efforts to reopen the Dunlop unit at Sahagunj in the Hooghly District of West Bengal have not borne any fruit. No common ground could be found to reopen it. The tripartite talk was called by the Labour Department in West Bengal. There are nearly 700 people on rolls in the factory. It has been closed since October 2011 as the management declared a work suspension in the unit.

Attempts to Revive the Company

The company earlier said that their proposal would have a self sustaining plan and that Dunlop would employ only as many personnel as is required for the production. Calcutta High Court appointed a Special Officer on March 26 to take inventory of its assets. Earlier, Dunlop proposed to transfer 336 workers of its Sahagunj unit. West Bengal government is interested in convening a tripartite talk and open the unit soon. But the statement of the provisional liquidator appointed by the Calcutta High Court regarding the assets of the company will assume a crucial role.

Chennai Plant Is Also In Trouble

Dunlop’s Ambattur plant in Chennai is also going to be closed down in the present form. Final settlement talk is on. 500 workers are employed in the Ambattur plant. Earlier, the Ambattur plant was plagued by labour unrest. Dunlop’s management is telling that it has been incurring heavy losses due to the labour unrest and suspending its operations in the plant with immediate effect. Dunlop management has alleged labour indiscipline in the factory whereas the trade unions are telling that the move to suspend operations is unjustified. They also blame the company management for the delay in paying wages to the workers.

Threat from West Bengal Government

In October last year, Dunlop announced reopening of its Sahagunj plant in phases. Trade unions have submitted a 7-point charter to resolve the Dunlop issue. CITU has told that the work suspension of the company in Sahagunj was actually a lock out declared unofficially. West Bengal government immediately asked Dunlop management to reopen the Sahagunj unit and settle disputes with the workers. The West Bengal government even threatened action if the company did not reopen the factory. But Dunlop delayed the July salary payment last year.

Ruia Trying To Escape His Responsibility

In the meanwhile, Pawan K Ruia, The Ruia group Chairman, has given up the directorship of Dunlop. SBI Global has served winding up notice on Dunlop. Earlier to this, the West Bengal government asked Ruia to meet its officials to make clear about his intentions on the ailing company Dunlop. Ruia group last year acquired three foreign companies which are manufacturers of automotive sealing systems. The companies were the Standard Profil AS from Istanbul, Meteor Gummiwercke KH Badje GmbH & Co KG from Germany and Sealynx Automotive of France. These acquisitions have enabled the Ruias to become number one in automotive sealing systems in European Union, generating a sales turnover of $850 million. The Ruia group is also on the way to becoming a top player in the auto ancillary segment. Ruia group is also following the practice of gaining the best technology partner wherever they do business.

Dunlop Management Is Cash Rich

From the above information, it is clear that Dunlop management is not starved of cash to run the company. The West Bengal government should force Ruia to run the Dunlop factories in West Bengal and Chennai and settle all the dues to the workers. If any worker has committed any illegal act bordering on crime, he should be dismissed mercilessly. Earlier, Dunlop management withdrew its layoff plans in Sahagunj plant. This was a good development. West Bengal government termed the Dunlop layoff notice as unacceptable and arbitrary. This could have forced the company to retract its layoff plan. Earlier, Pawan Kumar Ruia was contemplating to shift the company’s mother unit and utilising the sprawling premises to set up a 50 MW power plant. Earlier, Wealth Sea made an open offer to acquire the shares of Dunlop to the extent of 20%.

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