As part of cost reduction and capacity optimization
Skipper announced 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 31 October, 2018 has decided to shift the manufacturing facility of the Company situated at Survey no.296/7/8/9, IDA at Bollaram Jinnaram Mandal, Medak District, Telangana - 502325 to NH6, Madhabpur, Post: Uluberia, Howrah - 711303, West Bengal by transfer of plant and machinery and other accessories probably within 31 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 southern market through dealers and distribution network supported by the sales & marketing team of the Company.
The unit contributed around 27.62 crores (1.35%) in the turnover and 15.06 crores (2.36%) in the net worth of the Company during the financial year ended 31 March, 2018.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
