The board of VIP Industries agreed to dispose of the land and building of the Haridwar factory in Uttarakhand on 'as-is-where- is' basis to Fresh PET for about Rs 25-30 crore.
The operations at the said Haridwar factory of the company were suspended since March 2020 due to Covid-19 Pandemic. Turnover of Haridwar factory during the FY20 was Rs 246.60 crore (14.39% of the total turnover of the company for the FY20). Contribution made by Haridwar factory in net worth during the FY20) was Rs 27.11 crore (15.98% of the net profit before exceptional item and tax of the company for the FY20).The company is disposing of the land and building of Haridwar factory in pieces and hence it is not a slump sale. The company signed the sale agreement with Fresh PET on 2 September 2020. The sale is expected to complete in 4-6 months. The announcement was made post trading hours yesterday, 2 September 2020.
Fresh PET offers packaging solutions for various types of packaging industries, particularly catering to FMCG, pharma, liquor and food & beverages processing companies. Its factory is located in Haridwar, Uttarakhand.
VIP Industries reported a consolidated net loss of Rs 51.32 crore in Q1 June 2020 compared with net profit of Rs 35.08 crore in Q1 June 2019. Net sales tanked 92.9% to Rs 40.33 crore in Q1 June 2020 over Q1 June 2019.
Shares of VIP Industries rose 0.19% to Rs 294.30 on BSE. VIP Industries manufactures hard luggage and markets soft luggage imported from Bangladesh and China. VIP is the largest player in the luggage industry in India.
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