Falcon Tyres Ltd Company Summary

Falcon Tyres Ltd Summary

Acquired by the Shaw Wallace group through its subsidiary and associate companies in 1987, Falcon Tyres started operations in 1975. It was running profitably till 1982, after which its performance suffered due to a non-remunerative product-mix, outmoded technology and factors like recession in the automobile industry, etc. Continuously incurring cash losses, the company came under the purview of the BIFR. Shaw Wallace worked out a professional plan soon after acquiring it. Dunlop India, an associate company of the group, extended technical, marketing and managerial support and the erstwhile BIFR company turned around. The company has its manufacturing plant at Mysore. At present, it manufactures tyres and tubes for scooters, mopeds, motor cycles, auto rickshaws and animal-drawn vehicles. The company has a technical and marketing tie-up with a Korean company to manufacture hi-tech automotive international quality butyl tubes. Falcon sells 70% of its production to OEMs; its client list includes Bajaj, Hero Honda, Escorts, etc. In 1994-95, the company came out of the purview of the BIFR after posting a profit. It has diversified by manufacturing four-wheeler tyres and radial car tyres. In 1995-96, the company was implementing the expansion of tyre and tube capacity by 6.5 lac. The loan is provided by KSIIDC, banks, internal accurals. The company has also entered into the allied field of passenger car tyre. The company has increased the installed capacity of two and three wheelers tyres from 3,00,000 to 3,50,000 tyres per month, which was completed in March, 1999. The company is planning to diversify its product range like Tyres for Jeep,Car,Tractor front & Rear in the Current Financial Year. The installed capacity of Tyres was increased to 4000000 Nos in 2001-02 and again in 2002-03 it was increased to 5200000 Nos. The company is also planning to enhance the manufacturing capacities in all sizes and diversify in new segments like Car,LCV,Jeep and Tractor Front tyres.