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| Exchange Received Time 01/10/2018 12:32:12 Exchange Disseminated Time 01/10/2018 12:32:17 Time Taken 00:00:05 | With reference to the above, we wish to inform that as a part of cost reduction initiative and optimization of capacity utilization in the markets where the Company holds strong foothold, the Board at its meeting held on 30th September, 2018 has decided to shift the manufacturing facility of the Company situated at Plot No - 5, UPSIDC, Industrial Area, G.T Road No - 91, Sikandrabad, Dist - Bulandshahar- 203206, Uttar Pradesh to NH6, Madhabpur, Post: Uluberia, Howrah - 711303, West Bengal by transfer of plant and machinery and other accessories probably within 31st December, 2018.
The said plant belongs to the polymer division of the Company and is based on asset light model wherein the land and building has been taken on lease and the plant and machineries belong to the Company.
The above shifting will reduce the fixed cost without reduction in overall capacities of the division which stands at 51,000 MTPA. The Company will continue to serve the northern market through dealers and distribution network supported by the sales & marketing team of the Company.
The unit contributed around 173.68 million (0.85%) in the turnover and 123.66 million (1.94%) in the net worth of the Company during the financial year ended 31st March, 2018.
Further, the Board has entrusted the management to explore and bring on table more options and strategies for better synergies and overall cost reductions of the polymer division.
Kindly take the above information on record.
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