Ruias in talks with foreign co for Rs 500 cr car radial JV

The Ruia Group is at an advanced stage of talks for roping in a foreign technology partner for a proposed joint venture plant manufacturing car radial tyres under its Dunlop brand, Group Chairman Pawan K Ruia said.

"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," Ruia said.

"Equity participation by the joint venture partner could be of equal partnership. A decision on the modalities will be arrived in a month's time," he said.

The new unit, the location for which is yet to be finalised, will also produce truck radial tyres.

Asked about the entities that might invest in the new venture, he said, "The brand will be Dunlop but it has not been decided which companies will be part of this venture."

Meanwhile, Ruia said the rights issue of another group tyre firm, Falcon Tyres, may be launched some time in 2011-12 after it gets government approval for FDI.

Dunlop and Falcon Tyres are two listed entities of the Ruia Group. Dunlop makes OTR tyres, while Falcon makes tyres for two and three-wheelers.

"We need funds for Falcon's expansion project and a rights issue would be the preferred route. Even if the FDI (FIPB) approval gets delayed further, we may pick up a stake via a domestic entity," Ruia said.

Ruia had earlier said proceeds from the company's planned rights issue would be invested in a Rs 550 crore two-wheeler tyre project in Uttaranchal, which is likely to come up by end-2011-12.

The plant would supply two-wheeler tyres exclusively to Hero Honda, which provided the land for the project.

Ruia said he would continue his pursuit of buying up small and troubled family-run automobile component-makers in Europe that supplied to global auto giants. Talks were at an advanced stage for one such deal.

Ruia had earlier acquired the assets of three such European companies -- Gumasol Werke and Draftex Automotive in Germany and UK-based Schlegel Automotive.