Ruia Bros to form car, truck radial JV in India - reports

ERJ staff report (DS)

Mumbai, India -- India's Ruia Group is reportedly on the point of announcing a tyre plant in India, structured as a joint venture with a foreign (non-Indian) technology partner. Local news reports quoted Group Chairman Rawan K Ruia saying, “We are holding talks with a technology partner for radial technology and (they) are at a very advanced stage. The partnership will not be restricted to technology".

The reports said the company would be structured as a 50-50 joint venture, and would make Dunlop-branded radial tyres suitable for passenger cars and trucks, but did not give the location of the plant, nor its capacity. He said he exected to make a further announcement by the middle of December.

Ruia was also quoted saying Falcon Tyres Ltd -- another Ruia subsidiary -- will launch a Rights issue in 2011 or 2012, with the expectation of using the money raised to build a two-wheel tyre project in Uttaranchal, at an investment of around Rs 5500 million (euro 87.5 million)

Ruia Group has acquired Gumasol, Henniges and Schlegel in the wake of the automotive crisis. Ruia was quoted saying he will continue to seek out troubled, family-owned automotive suppliers for potential acquisitions and that Ruia Group is at an advanced stage of a further such deal.

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

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