Manugraph India Limited gets nod for closure of Unit-2

Manugraph India Limited has announced further to its application regarding closure of one of its manufacturing facilities (Unit-2) in view of no production in the said Unit since April 2019 and continued labour cost and mounting losses of the Company. The application was made on July 5, 2020 to the Ministry of Labour, Maharashtra State.

The Ministry of Labour, after considering the Company's closure application, submissions and hearing with both the parties (i.e. the Company and the Labour Union), allowed the closure of Unit-2, located at Kadoli, Taluka Panhala, Kolhapur, Maharashtra, vide its Order dated September 3, 2020.

This approval shall enable the Company to close Unit-2 and save employee and other administrative & fixed cost pertaining to the said unit, while the foreseeable orders can be fulfilled by the other manufacturing unit (Unit-1). The newspaper industry (which is a major market for the Company's products) around the world are facing headwinds due to a gradual shift from traditional print technology to digital technology, the Company can now make optimum utilization of its facilities and resources and focus on diversification (including flexible printing).

Shares of MANUGRAPH INDIA LTD. was last trading in BSE at Rs.10 as compared to the previous close of Rs. 9.9. The total number of shares traded during the day was 2551 in over 8 trades.

The stock hit an intraday high of Rs. 10.2 and intraday low of 9.56. The net turnover during the day was Rs. 25618.

Source : Equity Bulls

Keywords