La Opala announces suspension of Operations at Madhupur Opal Glass Plant

La Opala RG Limited (BSE: 526947, NSE: LAOPALA), a leading manufacturer of Opal Glassware in India, today announced the suspension of operations at its Madhupur Opal Glass Plant, in Jharkhand, effective July 7, 2024. The decision, approved by the Board of Directors in their meeting held on July 6, 2024, was driven by the aging of the plant, outdated machinery, and obsolete semi-automatic technology, resulting in lower efficiency, and higher production costs.

Key Points of the Announcement:

Plant Details: The Madhupur Opal Glass Plant, located in Deoghar District, Jharkhand, was established in 1987.

Reasons for Suspension: The plant's aging infrastructure, outdated machinery, and obsolete semi-automatic technology have made it non-viable to continue operations due to lower efficiency and higher production costs.

Impact on Operations: The suspension will not have a material or adverse effect on the company's operations. The excess capacity at the state-of-the-art Sitarganj plant in Uttarakhand will absorb market demand, ensuring no loss in turnover or financial impact.

Future Utilisation: The company will explore various options for the utilisation of the land parcel, buildings, and plant machinery in the best interest of the company.

Speaking on the decision, Management said, "The decision to suspend operations at our Madhupur plant was necessary to maintain our commitment to operational excellence and sustainability. By consolidating our production at the Sitarganj plant, which operates with the latest generation of automatic technology, we are positioning La Opala for future growth and innovation. We are confident that this strategic move will enhance our efficiency, reduce production costs, and allow us to better meet the evolving demands of our customers."

Shares of La Opala RG Limited was last trading in BSE at Rs. 342.30 as compared to the previous close of Rs. 335.25. The total number of shares traded during the day was 27859 in over 1173 trades.

The stock hit an intraday high of Rs. 350.55 and intraday low of 335.85. The net turnover during the day was Rs. 9588454.00.

Source : Equity Bulls

Keywords

LaOpalaRG INE059D01020 Operations Suspension Madhupur OpalGlassPlant