Tyre manufacturer Dunlop India Ltd (DIL) has announced that it will commence production at both its plants in Sahaganj (West Bengal) and Ambattur in Tamil Nadu from today (19th May, 2000), the company said yesterday.
"The cost of the Rs 20-crore holding operations has been overrun and the promoter's contribution has been raised to Rs 26 crores," Murli Dhar Shukla, DIL president, told Business Standard from Chennai. "We currently have orders to the tune of Rs 10 crores on hand." "We are running a month behind schedule and the total cost of making the units production worthy has been around Rs 24.5 crores," he said.
Shukla confirmed that DIL has already started test production for aero tyres at Sahaganj last week.
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The work at both the Dunlop plants had remained suspended for over two years. The suspension was lifted after intense negotiations and meetings with the unions on February 7, 2000, at Ambattur and March 11, 2000, at Sahaganj.
Ranjit Neogy, general secretary of Dunlop Rubber Factory Labour Union of Intuc (DRFLU) when contacted told Business Standard, "Though the management is keen on resuming production from May 19, the Ambattur unit faces electric supply problems which may not make it possible for the DIL management to start production."
Shukla, however, said, "All is well and Ambattur will also resume operations today. We have full electric connection and there are no problems here."
Neogy alleged that Shukla has not met the unions to take stock of the situation as decided earlier under the charter of negotiations.
He expressed doubts on the management's target to meet the 300 tonnes of finished product due to the slow progress of maintenance work. Also, the 600 aviation tyres which the company is supposed to deliver by May 30 seems doubtful.
Ashok Pal, senior member of Citu-affiliated Dunlop Worker's Union (DWU), however, struck a different note and said, "The production process had actually started last week and DIL has begun producing some of the aviation tyres."
The management will give a detailed production list of vehicle tyres today which will put in place a production time table. "Though Shukla has himself not met the workers for stock taking but senior plant officials have been keeping a regular contact with the unions," Pal said. He said, currently between 1200 workers are involved in the actual production process and around 1500 workers are expected to be fully involved in the holdings operations phase as more production lines gets started.
DIL release said that the plants will be turning out the entire range of production in Dunlop India's portfolio. It said full-fledged production of aviation tyres will commence from May 22, 2000.