Falcon Tyres Ltd splits shares and announces bonus

Bangalore, 30th July, 2009: The Board of directors of Falcon Tyres Ltd in its meeting today has recommended a bonus of two shares for every equity held. The board has also recommended splitting its equity shares of face value Rupees 10 into two equity shares of face value Rupees 5. The company is in the process of augmenting its present capacity by introducing 7 day week immediately, which will take the plant capacity to 900,000 tyres a month from the current level of 750,000 tyres per month. The capacity will be further augmented by 500,000 tyres per month, raising its capacity to 1,400,000 tyres per month. The expansion program involves an investment of Rs. 300 crore and is scheduled to be completed by fiscal 2009 – 2010. In Q1 of 2009 – 2010, the company has recorded a turnover of Rs. 139 crore.

Announcing the developments to the mediapersons at Bangalore, Mr. Pawan K. Ruia, Chairman, Falcon Tyres Ltd, said, “The demand scenario for 2–wheeler tyres is quite encouraging. On completion of capacity enhancement Falcon intends to have a presence in the OEM segment, replacement segment and export segment in equal proportions.”

Falcon Tyres Ltd has been on a high growth trajectory since December 2005 when it was taken over by the Ruia Group. The Ruia Group has Dunlop India Ltd in its portfolio and Falcon markets its products under the Dunlop brand. Since the takeover, the tyre manufacturing capacity of the plant has been doubled from the previous 3.75 lakhs per month and will further go up with the capital infusion. The company now is distinctly the emergent leader in the two and three wheeler tyre segment.

For further information please contact: Dhrubajyoti Nandi – 98310.56023