The Kosi unit widened its net loss to Rs 1.67 crore in 2015-16 from Rs 1.1 crore in 2014-15.
The Kosi unit widened its net loss to Rs 1.67 crore in 2015-16 from Rs 1.1 crore in 2014-15.
New Delhi:
Bajaj Electricals on October 10 said ithas decided to shut down from this week its bulbs and tube lights manufacturing unit at Kosi in UP, which originally belonged to a sick company registered with BIFR, citing -"not even a remote chance-" of improving operations.
The board of directors of the company at its meeting today reviewed the performance/operations of the GLS bulbs and tube lights manufacturing unit at Kosi, Mathura, Bajaj Electricals said in a BSE filing. This unit originally belonged to a sick company registered with BIFR and was purchased by the company in an open bid held by IDBI Bank, the operating agency for BIFR in 2012-13, it added.
-"The company had put in substantial efforts to improve the operations, however, the same are not yielding the desired results and there is not even a remote chance of improvement therein on account of...various factors,-" it added.
The factors included declining demand for GLS bulbs and their phasing out in the wake of increased popularity of long-lasting and energy saving LED products; higher cost of fluorescent tube lights in comparison with competitors and declining market of the same, besides non-availability of and difficulty in retention of skilled manpower because of losses made by the unit.
Bajaj Electricals said the Kosi unit has also been suffering from under-utilisation of manufacturing capacity as is the case across the industry for GLS bulbs. The company further said the implementation of E-Waste (Management) Rule 2016 requires technology upgradation and calls for major investment in order to comply with stricter norms.
-"In consideration of the above, the Board has decided to close the unit with effect from October 13, 2016,-" the filing added.
The Kosi unit widened its net loss to Rs 1.67 crore in 2015-16 from Rs 1.1 crore in 2014-15. Its total revenue in 2015-16 was at Rs 47.84 crore as against Rs 24.31 crore in 2014-15, the filing said.
