Dunlop India has lined up an industrial rubber products manufacturing unit in Mysore with an investment of Rs 17 crore.
The company, which holds nearly 50 per cent of the market share in industrial rubber products, plans to manufacture wire-braided and yarn-braided hose pipes, with an installed capacity of 15 lakh and 10 lakh metres per annum respectively.
The project is expected to go on stream on May 31, 1997. Of the total investment of nearly Rs 17 crore, the promoters contribution will be Rs 10.55 crore while the company will seek a term loan of Rs 6 crore.
Dunlop will invest Rs 60 lakh in land and building while nearly Rs 10.55 crore will be spent on plant and machinery. It has provided a working capital margin of Rs 3.55 crore and a contingecy fund of Rs 44 lakh while Rs 1.41 crore has been kept aside for other expenditure.
This will be Dunlops third plant involved in the manufacture of industrial rubber products aftter the Sahaganj plant in Calcutta and the Ambattur unit near Chennai.
The range of products being manufactured by Dunlop includes industrial and automotive V-belts, hoses for high-pressure and high-safety usage, conveyar belts and anti-vibration mountings.
The products from the new unit will add to Dunlops existing range of hoses. The plant will be capable of manufacturing hoses up to 500 mm inner diametre as against its existing range of up to 31.5 mm (for high pressure hoses) and 28 mm (low pressure).
Dunlop diversified into industrial rubber products and set up its first such unit at Sahaganj in 1949. The company set up its second and factory at Ambattur near Chennai next year for the manufacture of tyres for two-wheelers, passenger cars and trucks.
Between 1975-78, both the factories were modernised to meet changing market demands. Since then, Dunlop has been striving hard to become the sole rubber products company with a wide range of rubber products.
Besides the Mysore project, the company has lined up major investment plans, to be executed over a couple of years including the joint sector plant for the manufacture of steel radials and cross-ply tyres being set up near Baroda.
The project, being set up at a cost of Rs 700 crore will have a capacity to manufacture 100,000 tyres per month in the first stage, which will be doulbed soon after the project goes on stream.
Besides, the company is setting up a passenger steel radial tyres unit at the Ambattur factory near Chennai. It has also drawn up plans for the manufacture of metalastiks and adhesives besides a project for V-belts with collaboration of Mitsubishi Belting of Japan.
In the high-pressure hoses, Dunlop has 29 per cent of market share while imports hold 16 per cent.
