The takeover of Jessop Company Limited (JCL) in August 2003 by the Kolkata-based Ruia Group that owns Dunlop India, Falcon Tyres and Kamlapur Sugar Industries, was not a smooth process. Several questions were raised about the price the Ruias paid for a 72 per cent stake in the company, with many arguing that Rs 18.18 crore was too little, though its net worth was not just wiped out but negative.

Problems compounded with a lawsuit filed against the takeover by the JCL Staff Association, which argued that being in the core sector, the company could not be divested. And if that was not enough, IFCI and IDBI also put forth a case against the takeover of Jessop by Ruia Cotex Ltd., by terming the latter a defaulting company, due to outstanding loan amounts.

Notwithstanding all the hurdles, JCL’s fortunes revived after the Ruias took over and the company achieved what attempts worth Rs 466 crore of restructuring by the government over the years could not — a profit.

“Many thought that we were going in for Jessop to make money by selling the land. Our detractors felt that we had no expertise in engineering, and would not be able to revive the company. We were not bothered about the criticism and were focused on the task at hand. We wanted to answer through the performance of the company, and with time we have given that answer,” said Pawan Kumar Ruia, chairman of the Ruia Group.

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