Sumitomo And Ruia Group In JV – Report

According to the Calcutta Telegraph, the Calcutta-based Ruia Group and Japanese tyre manufacturer Sumitomo are engaged in talks concerning the construction of a radial tyre factory in India. It is reported that the joint venture would cost around 500 crore rupees (US$113 million) and would either be a 50/50 project or with Sumitomo taking a majority holding.

Sumitomo would provide radial tyre technology, plugging a gap in the Ruia portfolio, while Ruia would provide access to the domestic market via its distribution and sales network.

Ruia Group chairman Pawan K. Ruia is quoted as saying that talks “with a foreign player” (unnamed) were in an advanced stage. He continued: “We have been in dialogue for months. I think we should decide in the next 15-30 days whether to do the deal together or move on.”