KOLKATA: The Ambattur unit of Dunlop India Ltd (DIL) is set to commence production from next week, a month ahead of the schedule DIL Chairman, Pawan Kumar Ruia, said. The unit had reopened for maintenance work in early April.

Mr. Ruia said an initial capital of Rs. 50 crore would be required to kick off production. This would be met from internal resources. The initial start-up capacity of 40 tonnes daily would be ramped up to 130 tonnes a day by December. The first tyres to roll out would be for light commercial vehicles and truck tyres, while tractor tyres would be produced later.

Of the 1,200 strong workforce, about 1,000 people would be absorbed while 200 would be offered voluntary retirement scheme (VRS). The list was now being finalised with the unions, company sources said, adding that the surplus workforce was mostly from areas like canteen and security and some other areas which would be contracted out.

Employees were likely to get a pay packet of about Rs. 8,000 and the company would be spending Rs. 80 lakh a month on salaries.

The new promoters of Dunlop have withdrawn their case from the Appellate Authority for Industrial and Financial Reconstruction saying that DIL has now moved back to the Board for Industrial and Financial Reconstruction (BIFR) and a rehabilitation package would be submitted soon.

DIL would sell its products to OEMs mainly, but a dealership network was also being built up, Mr. Ruia said. Indications were that talks had been held with Ashok Leyland and Tata Motors.

As for the Sahagunj unit in West Bengal, which commenced maintenance work in May, production was likely to start from October with the full production range. However, here, only 1,200 people would be required against the existing workforce of 2,600.

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