Swraj Paul sets eyes on Dunlop

London-based industrialist Swaraj Paul is interested in taking over the late M R Chhabria family-controlled ailing tyre company Dunlop India.

His son Angad Paul told CNBC that the Caparo group was weighing several options to set up greenfield projects in India. Dunlop, he indicated, was one of the possibilities.

Angad Paul, CEO of Caparo, said Dunlop was "bombed out" and talks were still at a preliminary level.

When asked, a spokesperson for the Jumbo Group, the promoters of Dunlop, said the group was focused on implementation of the rehabilitation package.

"Dunlop is a sick company. It is now under the supervision of the Board for Industrial and Financial Reconstruction (BIFR). Our task is to implement the rehabilitation package first." He said he was not aware of any takeover bid by SwarajPaul.

Industry sources were not certain about the acquisition of the company from the BIFR net.

"Any kind of finance programme, including acquisition, has to go through the BIFR. There is hardly any instance of acquisition of a company from the BIFR net," they added.

Dunlop, a defunct tyre company, employs over 2,500 people. The company has properties in West Bengal and Tamil Nadu and got huge liabilities with financial institutions and banks.