The project was conceived earlier by Dunlop India managing director PJ Rao as part of his diversification plans. The Jumbo Group of Companies which owns both Falcon and Dunlop had planned to implement the project at Dunlop's Calcutta unit.

Since the revival plans of Dunlop has hit a roadblock the group now feels that the horse-pump project should be a part of the profit-making Falcon Tyres. With this new product Falcon will be entering the horse-pump industry segment. At a later stage, the company plans to export products to neighbouring countries. The company is planning talks with financial institutions to part-finance the venture.

The main players in the Rs 400-crore horse pump industry are Gates of the US in association with Anand group and Andrew Yule. Gates is also contemplating to put up its own unit in India as the horse-pump industry has been witnessing around 20 per cent growth rate.

The company has plans to make foray into cycle tyre and farm-tyre marketing segment. Falcon has identified three companies to source cycle tyres, which will be marketed under Falcon brand names in India. It is unlikely to go in for exports in the next two years.

The company is planning an advertisement blitzkrieg to promote the Falcon brand and has also charted a foray into the replacement tyre market in a big way. The company will be spending around Rs 3 crore this year for promoting the brand, said Ashok Wadhwa, vice-president (marketing), Dunlop India.

``Entering the replacement market is one of the major steps the company plans for the current fiscal. The proposed foray into the replacement market will help us in garnering a considerable marketshare in the domestic market. Falcon aims to have Rs 30 crore revenue this year in this segment,'' opined Rao. ``Our focus is to become a market driven company. The proposed shift from product driven firm to a market driven one will require lot of funds. The priority will be given to fund raising programmes. By the end of the current fiscal the company would achieve a level of 3.5 lakh tyres per month,'' he added.

Exports have also been on the upswing with substantial exports of tyres and tubes to the developing countries in South and South East Asia, Middle East and Latin America. The Bangalore-based Falcon is an OEM supplier to Bajaj Auto, Hero Honda Motors, Escorts Yamaha, Bajaj Kawasaki, LML, and Kinetic Honda Motors. During 1997-98 the company has reported a turnover of Rs 98 crore (Rs 86 crore) and net profit of Rs 4.95 crore (Rs 3.4 crore).

Dunlop may be reopened by year-end

The promoters of Dunlop India Ltd are likely to reopen the company by the year-end. For the purpose the promoters are looking at Rs 100-crore investment, a part of which will come from the proposed sale of the company's complex at Worli in Mumbai. ``We are also planning a voluntary retirement scheme to trim the excess flab to become more viable,'' said Rao.