Dunlop looking to wind up Ambattur facility

Dunlop India is considering a proposal to wind up its closed tyre manufacturing facility at Ambattur in Tamil Nadu and sell the 32 acres.

According to the company Chairman, Mr P.K. Ruia, the 700 workers in the plant have proposed an early separation through one-time settlement allowing Dunlop to wind up the facility. The company is yet to take a call in this regard.

“If we agree to the workers’ proposal for an early separation we will be free to leverage the existing land asset for cash generation provided there is a buyer and even relocate the factory,” he said, adding that the existing land value at Ambattur was approximately Rs 10 crore an acre.

“However, we are yet to make up our mind on the proposal. Firstly, we have not taken any decision on either winding up the facility or relocating the same. Secondly, considering the meltdown in the real-estate market it might not be easy to locate a buyer for the land property,” Mr Ruia said.

Also he did not comment on the possibilities of the Ambattur facility.