Dunlop Looks to BEML for Heavy Tyres Deal

Dunlop India Ltd is reportedly taking steps to enter the OTR tyre market by cooperating with Bharat Earth Movers Ltd and Coal India Ltd (CIL). Kolokata Newsline reports that the companies have decided to invest in tyre-makers to ward off a supply crisis in India. BEML has already tied-up with CIL for providing 1 billion rupees (£11.4 million) each to Apollo Tyres and JK Tyres as a soft loan so that they manufacture dumper-truck tyres. According to the Kolkata Newsline, CIL needs to replace at least 2,696 tyres in 2006-07 and a total of 19,300 tyres by 2011-2012.

Dunlop sources told local news sources that preliminary talks have been held with the BEML management. Dunlop is looking for a tie-up with the BEML and CIL along the lines of the one with Apollo and JK, but it may also opt for an OE deal. BEML chairman V R S Natarajan told Newsline that although BEML’s demand for dumper-truck tyres is going to rise as it steps up capacity, it would not consider Dunlop until the tyremaker resumes full production.