Alkosign Ltd to close Luggage unit

The Board of Directors of Alkosign Ltd, at its meeting held on Monday, February 02, 2026, has approved the closure of the Company's Luggage Unit, with effect from Monday, February 02, 2026 from closure of business hour.

The rationale for the captioned matter arises from intense competition prevailing in the luggage market, continuous and sustained losses in production, and the widespread availability of low-cost polypropylene (PP) luggage, whereas the subject unit possessed the technical capability to manufacture only polycarbonate (PC) luggage, thereby rendering the operations commercially unviable.

Further, the OEM partners associated with the unit subsequently established their own manufacturing facilities, resulting in a substantial reduction in outsourced production volumes. Additionally, the cancellation of the Baggit licence due to their financial incapacity, coupled with the prolonged withholding of payments owed to us, materially disrupted cash flows and adversely affected the financial sustainability of the unit, ultimately necessitating the said course of action.

Therefore, it was collectively decided to approve the Closure of Luggage business unit w.e.f. Monday, February 02, 2026, in the interest of the company and to focus on the core business of the Company.

The Luggage Business Unit of the Company had contributed turnover of 42.78% in total consolidated turnover of the Company as on last financial year ended on 31st March, 2025.

Shares of Alkosign Limited was last trading in BSE at Rs. 63.00 as compared to the previous close of Rs. 63.00. The total number of shares traded during the day was 2250 in over 2 trades.

The stock hit an intraday high of Rs. 63.10 and intraday low of 63.00. The net turnover during the day was Rs. 141862.00.

Source : Equity Bulls

Keywords

Alkosign Stationary INE0KA601012 LuggageUnit Closure