Crompton
to suspend work
at three divisions
MUMBAI:
Crompton Greaves, the LM Thapar group-controlled engineering major,
has decided to suspend operations in three of its businesses — capacitors,
informatics and industrial electronics — due to paltry volumes.
The
three business divisions have a combined turnover of Rs 60 crore and
employ around 120 people.
“The
board of directors have granted their in-principle approval to the suspension
of operations in the business areas of the capacitors division located
at Pune, the informatics division located at Bangalore and the industrial
electronics division located at Nashik, and authorised the management
to review the company’s financial and operational exposure in these
business areas and take suitable action,” Crompton Greaves has said.
Company
officials told ET, the decision to suspend operations in these businesses,
which account for just about 4% of the company’s total turnover, was
due to low volumes. “The management will take a decision on the next
course of action, whether to sell the units or close them,” said a senior
company official. At the BSE, the Crompton Greaves scrip rose 1.9% to
close at Rs 60.4.
“The
company will decide on what is to be done with the 120-odd workers engaged
in these businesses through mutual consultation. No final decision has
been taken on introducing a voluntary retirement scheme,” the official
added.
TIMES
NEWS NETWORK
[ WEDNESDAY,
APRIL 23, 2003 03:36:49 AM ]
