Ruia Group company Falcon Tyres is eyeing the South for locating its third unit. At present, the company has its mother unit at Mysore, Karnataka, besides another unit in Haridwar in Uttarakhand.
Indications are that the Ruia Group is looking at either Tamil Nadu or Karnataka for its next unit or a location on the Tamil Nadu-Karnataka border. “The company is in an expansion mode,” an official said. Investment at this new unit is likely to be of the order of Rs.1,650 crore.
Sources said Falcon aimed at becoming the top global producer in the two- and three-wheeler tyre segment by optimising its production facility while expanding its operations in multiple locations.
The company which was incorporated in 1973, came into the Ruia fold from December 1, 2005. Its present installed capacity is 11 million tyres. It sells its product under the Dunlop, Donin and Falcon brands supplying to OEMs like Hero Honda, Bajaj Auto, Piaggio, Mahindra and Mahindra and Royal Enfield.
It exports tyres to 21 countries including Latin America, West Asia and Africa besides some Asian countries. Sources said that the company was also looking to having a dedicated facility for the export market. It is also planning to set up offices in strategic global locations.
The company's turnover stood at Rs.1,000 crore in 2010-11 and it was projected to increase by nearly 50 per cent in the current fiscal, it was learnt. The company now enjoys the third position in two- and three-wheeler tyre production after MRF and TVS.