Carborandum Universal, a Murugappa Group company, is considering a roll back of its investment plans in Kerala due to unfavourable industrial conditions in the state.
Addressing a press conference here, its managing director K Srinivasan said the company incurred a huge loss due to the delayed implementation of its new projects in Kerala, besides the withdrawal of overseas joint investors.
The company is facing issues at its Cellaris Re-factories India Private Limited (CRIPL) unit, set up for producing high-temperature resistant products (named Bubble), used in refineries, with the support of overseas investors.
It had so far invested Rs 30 crore in the project, which is located at the company-owned special economic zone (SEZ), at Kalamaserry, near here. The company claims there had been agitations at the plant on grounds of environmental concerns. However, the plant is yet to begin operations.
Srinivasan said agitations had led to a delay of around 18 months in completing the project. He added foreign investors withdrew from the project due to the inordinate delay. The SEZ is also reeling under crisis because of labour problems, affecting the commissioning of new projects. The company’s earlier plan to set up a plant for producing raw materials for making metalised cylinders at the SEZ is now in doldrums.
The company also wanted to revamp its oldest carborandum plant in Kerala. As part of the plant’s upgradation, it planned to start a tilt furnace project. “Under the present labour conditions, Carborandum Universal is now forced to withdraw from the development activities in Kerala,” he said.
He said an expert-team from Russia which had recently visited several plants in India has avoided its visit to Kerala due to adverse industrial conditions in the state. Terming the situation alarming, he urged the state to create a good industrial climate.
Carborandum has initiated several CSR activities in the education sector and also plans to start a skill development center at Kalamassery.
