Falcon Tyres posts 300 per cent growth in net profit
Falcon Tyres Ltd has recorded a 300 per cent increase in net profit since it was bought by the Indian Ruia group. Falcon Tyres registered a net profit of 36.3 million rupees compared with 9.2 million in 2004 – 2005. Total company turnover stood at 2.55 billion rupees against 2.19 billion the same time last year. The company announced 25 per cent dividend for its shareholders, which was 2.50 rupees per share, the highest in its history.
The Ruia group had taken over Falcon Tyres in December 2005 along with two other companies, Dunlop India Limited and India Tyres & Rubber from the Chhabria controlled Jumbo group.
Announcing the result, Mr Pawan Kumar Ruia, chairman, Falcon Tyres said: “The company has embarked on a 600 million rupee expansion plan. The tyre manufacturing capacity is being raised from 550,000 to 750,000 per month and the tube manufacturing capacity is being raised from 350,000 to 750,000 per month.” Mr Ruia also said the company was looking at Sumitomo for the latest technology in the two-wheeler and three wheeler tyres segment.
Falcon Tyres, located in Mysore, Karnataka, was incorporated in 1973. The company manufactures and markets a wide range of two and three wheeler tyres under the Dunlop brand and enjoys about 20 per cent market share in the two and three wheeler tyre segment.