Ruia Group tyre partner may be Sumitomo

ERJ staff report (DS)

Kolkata, India -- Further to last week's reports that Ruia Group, through its subsidiary Dunlop Tyres, plans a joint venture for car and truck tyres in India. The Calcutta Telegraph reports that the partner is likely to be Sumitomo Rubber Industries. SRI owns the Dunlop brand in Japan and other parts of Asia.

The Calcutta Telegraph quoted un-named sources saying the project would cost around Rs 500 crore (euro 81 million) with both Ruia Group and Sumitomo contributing equity. The share structure would be either 50-50 or a majority to the Japanese company. The report added that the plant would be built in either Tamil Nadu or Karnataka State.

The report further added that, "Ruia is also closing in on a big acquisition in Europe in the automotive sector. The deal size could be $200-300 million."

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Ruia, Sumitomo eye deal Calcutta Telegraph (India)

Reports from last week:

Ruia to enter into joint venture for radial tyres Sify (India)

Foreign technology partner likely for Ruia joint venture The Hindu (India)