Falcon India to add 2, 3-wheeler tyre production

ERJ staff report (DS)

Kolkata, India - Several Indian newspapers are reporting a press conference in which Falcon Tyres India - controlled by the Ruia Brothers -- intends to modernise and expand a plant in Mysore and add a new factory in Uttarakhand to add a total capacity for 12 million 2- and 3-wheeler tyres each year.

The combined effect would be to increase total production to 2.3 million units/month from the current 1.3 million. Combined investment would be Rs 8.5 billion (Euro 150 million).

The Uttarakhand project would be a greenfield site located around 30 km from Haridwar. Investment there would be Rs 5.5 billion. The project still has some land issues to be sorted out, but construction is likely to begin in the third quarter of the year, with the aim of completing construction before march of 2011. It will produce around 500 000 units/month of two-wheeler tyres, aimed primarily at OE supply, including Hero Honda's plant at Haridwar.

At Mysore, Ruia intends to add a further 500 000 units/month through an investment of around Rs 3 billion in the Falcon Tyres plant. That expansion would be on stream towards the end of the currnet financial year - or march 2011.

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Ruia Group to invest Rs 850 cr to boost 2-3 wheeler tyres Financial Express (India)

Falcon Tyres plans Rs 550-cr facility India Infoline (India)

Dunlop growth strategy The Telegraph (India)

Falcon Tyres to expand Mysore facility Business Standard (India)

Dunlop India expects Rs.550 crore turnover Sify (India)

Dunlop eyes Rs 550 cr turnover in FY11 MyDigital FC (India)

Falcon Tyres to pump in Rs.850 crore in two units Sify (India)

Falcon may start production in Uttaranchal plant by yr end Economic Times (India)