GRP Ltd announces temporary suspension at Perundurai Reclaim Rubber manufacturing plant

GRP Ltd operates Reclaim Rubber manufacturing facilities at its plants in Ankleshwar, Panoli, Solapur and Perundurai. The ongoing adverse economic condition due to the COVID-19 pandemic coupled with weak auto sector performance over the last few quarters has further aggravated the order inflow from customers.

The Company will temporarily suspend its production at Perundurai plant w.e.f. October 1, 2020. Considering the demand situation currently and for the foreseeable quarters, the Company has decided to consolidate its capacity across 3 plants to curtail its fixed overheads cost to cope up with the current demand requirements. The operations and capacities at Ankaleshwar, Solapur & Panoli plant are adequate to cater the current customer demand. Hence, there would be no major impact on revenue and margins of the Company. The Company will make appropriate arrangements for existing manpower, material and machines on account of shutdown.

Source : Equity Bulls

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