Ruia group's bid for Air India: assets of Dunlop, Jessop not part net worth

Kolkata-based Ruia Group, whichhas submitted an expression of interest (EoI) to buy AirIndias 100 per cent stake, remained upbeat that the companywill face no hurdle in meeting the net worth criteria of Rs3,500 crore, sources aware of the development said onThursday.

The assets of Dunlop, Falcon and Jessop, which thegroup had earlier taken over, are not part of the net worthfurnished for the EoI for Air India, sources said.

The company is now competing with Tata Group and AirIndia Employee Consortium for buying the loss-making nationalcarrier.

Pawan Ruia, the previous chairman of the group, wasknown as a turnaround specialist for financially stressedcompanies that he took over and made them profitable within ashort span. The names include Dunlop India, Falcon Tyres, andJessop & Company.

Ruia made the surprise bid for Air India at a timewhen the group is marred with debt demands by banks and courtcases following its takeovers of these three companies.

Pawan Ruia's son Raghav Ruia is now the chairman ofthe group which may rope in a strategic partner for capitalrequirements, if qualified in the technical round, sourcessaid.

The West Bengal government had announced the takeoverof Dunlop and Jessop in 2016 but it still awaits clearancefrom the President.

The government is selling its entire 100 per centstake in Air India that has been in losses ever since its 2007merger with domestic operator Indian Airlines.

The airline, which started as a mail carrier in 1932,will give a successful bidder control of 4,400 domestic and1,800 international landing and parking slots at domesticairports, as well as 900 slots at airports overseas.

Besides, the bidder would also get 100 per cent of thelow-cost arm Air India Express and 50 per cent of AISATS,which provides cargo and ground handling services at majorIndian airports.