Owing to the ongoing global recession, working capital shortages and a sharp drop in demand of commercial vehicles tyres, Dunlop India has stopped production indefinitely. This has crippled the company’s operations though it has been announced that all the concerned issues have been amicably resolved.

There have been no lay-offs or closure and the current strength of 1,202 workers will be paid on a consolidated wage. The products rolling out of the plant has also reduced with Sahagunj unit in Hooghly district rolling out tyres at 40 tonnes against a capacity of 90 tonnes.

The factory's workers in Sahagunj, who were previously earning about Rs. 5,000 per month, are now eligible for a monthly subsistence pay of only Rs. 2,000. The crash in the automobile market in India has hindered its business and the company would consume this time to recast production and possibly change the product-mix. The product mix presently comprises, off the road tyres and truck tyres.

It has also been reported that Dunlop’s Group company Falcon Tyres, which makes two wheeler tyres will carry on normal operations as for now.

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Posted by Amrith K.A on 21 November, 2008 12:56:05 PM IST #