Dunlop India Plant Halts Production

Production at Dunlop India’s Sahagunj facility, which re-opened late last year and began producing tyres in January for the first time since 2001, has once again come to a virtual stop. According to state commerce and industry minister Nirupam Sen, a shortage of working capital is the factor behind this stoppage. “I shall discuss the issue with chairman Pawan Kumar Ruia,” he said following a meeting with union representatives and a local member of parliament. During this meeting it was alleged that company management have not been honouring the agreement they made with employees.

News of the facility’s latest woes has been widely reported in India’s media. Newspaper The Statesman has quoted union representative Kali Ghosh as saying “Mr Pawan Ruia has lost all his credibility.” He further stated that the Ruia group had not brought in capital or raw materials to run the plant, and claimed that workers are also owed money.

Mr. Pawan Ruia, overseas at the time news of the production stoppage was first reported, released a statement in which he claimed “we enjoy the best of industrial relations at Dunlop.” He will meet Mr Nirupam Sen on his return.