Meeting held in Bengaluru discusses reopening of defunct factory in Mysuru through Employees’ Co-op. Union
Bengaluru: Large and Medium Scale Industries Minister K.J. George had convened a meeting in Bengaluru yesterday to explore the revival of Mysuru-based defunct Falcon Tyres Limited. Mysuru District Minister G.T. Devegowda, Tourism Minister S.R. Mahesh, Departmental officials and Employees’ Union representatives were also part of the meeting.
The meeting discussed the rejuvenation of the company and contemplated several strategies on how the company could be revived as over 2,500 employees are facing an uncertain future.
The factory, established over four decades ago, was one of the largest two-wheeler tyres and tubes manufacturers in Asia.
The meeting explored the possibility of establishing a Co-operative Society or Co-operative Union through employees of the factory. There is a need of Rs.180 crore for the factory to be revived and the meeting discussed possibilities of raising the money through employee share and also mop up money through public offers, considering the profitability of tyre companies and also looking at other tyre companies that are making profits.
This suggestion of shares and public offers was given by officials from Tata Consultancy Services (TCS) who were part of the meeting.
Falcon employees can themselves establish a Co-op. Union that is supervised by the Government. The Union can collect funds with the active support of the Government and with the funds, production can start in the factory and even marketing activities can take place, experts opined.
Ministers and Employee Union representatives agreed to the suggestions put across the meeting and it was decided to hold another meeting with Chief Minister H.D. Kumaraswamy to take the process forward.
This post was published on February 16, 2019 3:38 pm