Makers Laboratories to close Formulations manufacturing unit at Palghar

Makers Laboratories Ltd has announced that the Board of Directors of the Company at its meeting held on March 29, 2007, has decided to close down the operations of the Company’s formulations manufacturing unit situated at Palghar, (District Thane) under the provisions of Section 25FFA of Industrial Disputes Act, 1947.

This formulations manufacturing unit was continuously making losses inspite of investments made by the Company for upgrading and expanding the facilities. The situation has worsened recently on account of lower capacity utilization due to non-competitiveness of the formulations manufactured by this unit vis-a-vis units situated in Excise Free Zones. This non-competitiveness has resulted into the withdrawal of work by third parties whose formulations were manufactured from this manufacturing unit and thus very low capacity utilization.

However, the Company will continue its main business of marketing of generic formulations within India.

Source : Equity Bulls

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