Shalimar Paints, one of India's leading paint manufacturers, Wednesday announced suspension of work at its iconic 112-year-old factory in Howrah district - the first paint manufacturing plant in entire Southeast Asia.
In a statement, the company said it was constrained to "suspend operations" due to "indefinite delay" in resuming work at the plant where a fire had broken out in March.
"There was an unfortunate incident of fire at our Howrah factory in March 2014. Over the last four months, we have been making all efforts to resume operations and during this period we have supported our workers by paying full wages.
"However, with indefinite delay in starting our plant, we are constrained to suspend operations," said an official spokesman of the company.
The company said its workers and staff at the plant have been offered employment at its other two plants in Nashik and Secundarabad, besides depots across India.
"Needless to say, Shalimar is committed to West Bengal and all our actions are in the direction of increasing our presence in the state," the spokesman said.
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The Howrah plant - a large scale manufacturing unit - was set up in 1902, months after the company was founded by two British entrepreneurs A.N. Turner and A.C. Wright as Shalimar Paints Colour and Varnish Ltd.
The company, now co-promoted by Ratan Jindal, deals in a wide range of decorative, industrial and architectural segments. It was sold to its present joint promoters Jhujhunwalas & O.P Jindal Group in 1989.
The closure of the factory follows the suspension of work at the Uttarpara facilities of Hindustan Motors - makers of the famous Ambassador car - in May due to want of funds and scarcity of demand.
The same month, engineering firm Jessop & Co, run by the Ruia Group, suspended work at its Dum Dum facility complaining of "continuous malicious intervention of outsiders in the functioning of the plant resulting in overall disruption of the management's plan to revamp the company's operations".