core sector communique

Dunlop Lay-Off Notice withdrawn

Kolkata, 5 April: An emergent meeting was convened by Mr Pawan K Ruia, Chairman of the Ruia Group, this morning to evaluate the situation arising out of the Lay Off notice served by Dunlop India Ltd at its Sahaganj plant.

While the senior and middle-level executives of the Ruia Group were busy with the Annual Business Convention at Thailand formulating the business strategies for the current year and analysing the past year’s performance, special attention was laid on the workings Dunlop India Ltd.

The recent hikes in raw material prices and related issues were discussed there and it was decided that a revised business plan with fresh infusion of funds would be prepared for the Sahaganj unit. At this point of the meeting the Dunlop management announced the news of the Lay Off at Sahaganj. It was decided that the course of action on this would be determined immediately on reaching Kolkata and issue would be resolved in the perspective of the Group’s philosophy.

The Ruia Group management team met immediately after returning to Kolkata this morning. After the meeting Mr Pawan K Ruia, Chairman- Ruia Group said: “The Lay Off notice issued by Dunlop India Ltd will be withdrawn immediately. The Company has been advised to immediately issue a new notice to that effect. Dunlop India Ltd has also been directed to prepare the details of the revised business plan and implement it in the course of next 4 months. The quantum of the fund required and the revised product mix will be known as soon as the plans are crystallised and will be communicated accordingly.

“Meanwhile Dunlop’s application for setting up a 50 MW thermal power plant is awaiting mandatory approvals. We’ll start implementation of the power project as soon as we receive the approvals. Once power generation starts at Sahaganj, I am sure, the plant will have undeviating viability.”

The Ruia Group sincerely requests co-operation of the Workers Unions of the Sahaganj unit of Dunlop India Ltd in implementing the revised long-term revival plan and seeks proactive assistance from the state administration in stopping the thefts at the Sahaganj plant and the workers’ housing. We'd also like you to note that the average Cost to the Company for each of the workers of the Sahaganj plant is approximately Rs 8000, and NOT Rs 5500, as has been reported by a section of the media.