Asian Granito India Ltd informed the exchange that its Board had approved the proposal of the management for the closure of its Wall Division at Himmatnagar which manufactures Wall Tiles.
The plant was very old and the Company has already started Wall Tiles Manufacturing at Morbi through its subsidiary. The Company will completely shut the production operation by 31st August, 2023.
The old machinery and technological obsolescence had resulted in higher production cost which cannot be recovered from the customers, hence it is not viable to run the plant of Wall Division. Further, the Company has also set up wall tiles manufacturing facility at Morbi through one of its subsidiary to compensate for the loss of turnover.
The plant contributed Rs. 38.94 crores in revenue and was 2.86% of turnover and 3.19% of networth in the last financial year.
The plant will completely shut the production operation by 31st August, 2023.