Falcon acquires Monotona tyres

Kolkata, 24 May 2010: Monotona Tyres Ltd has become a subsidiary of Falcon Tyres Ltd, a leader in 2-wheeler tyre, with effect from May 21, 2010. Monotona supplies high-quality tyres to OEMs like Bajaj Auto and also exports substantial number of tyres to Dubai, Egypt, Guatemala, Nigeria, Sudan and other countries The Company has production capacity of 300,000 tyres and 500,000 tubes a month for 2/3 wheeler vehicles and LCVs at its plant in Wada, about 85 Kms from Mumbai.

Monotona Tyres was acquired by the Kolkata-based Ruia Group in August 2006 and subsequently the production system has been streamlined to cater to the fast-growing segment of two-wheeler tyres. At present the capacity of the plant is being augmented by 500,000 tyres and 500,000 tubes per month along with a co-generation plant of 10 MW.

It may be noted that Falcon Tyres with a technical tie-up with Sumitomo Corporation of Japan markets its products under the Dunlop brand and henceforth in the replacement market Monotona products also will be marketed as Dunlop.

Commenting on the development, Mr Pawan K Ruia, Chairman of the Ruia Group said: “Now with Falcon Tyres becoming the holding company of Monotona, the combined capacity of the two companies will be 1.3 million tyres a month. Falcon itself is implementing Rs 300 crore programme to add 500,000 tyres a month to its capacity, which is expected to be operational by the end of current fiscal. On completion of the projects of both the companies, Falcon and its subsidiary will have a total capacity of 2.3 million tyres a month. This should be useful in carving out a bigger chunk of the replacement segment, while expanding the export destinations.”

For any clarifications on the issue, please contact D Nandi, VP: Corporate Communication at 033 2289 5203 or 098310 56023.

Released by the Corporate Communications division of Ruia Group

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