Modi Naturals Ltd to dispose plant and machinery at Pilibhit unit

MODI NATURALS LIMITED has approved the proposal for closure of operations of its manufacturing unit situated at Village - Lalori Khera, Bareilly Road, Pilibhit Tahsil, Pilibhit, Uttar Pradesh - 262001, on account of non-viability of manufacturing operations. This decision is in line with the Company's strategy of consolidating its bulk oil business.

The Company has also approved the sale/disposal of the plant and machinery installed at the aforesaid unit. It is clarified that the land and building pertaining to the said unit are not part of the proposed transaction and shall be retained by the Company.

The closure of the aforesaid unit is not expected to have any material adverse impact on the overall operations of the Company. The Company operates another solvent extraction plant in close proximity, which has adequate spare capacity, and the processing volume impacted due to the closure is expected to be substantially absorbed by the said plant.

Further, the proposed sale/disposal of plant and machinery does not constitute sale of an undertaking or substantially the whole of an undertaking of the Company within the meaning of Section 180(1)(a) of the Companies Act, 2013.

The Turnover contributed by the above unit is Rs 16 crores which is about 4% of the Standalone Turnover and 90 Lakhs Net worth which is about 0.81% of the Standalone Net worth.

The consideration to be received from the above sale is Rs. 63 lakhs.

Shares of Modi Naturals Limited was last trading in BSE at Rs. 364.90 as compared to the previous close of Rs. 359.30. The total number of shares traded during the day was 3138 in over 188 trades.

The stock hit an intraday high of Rs. 375.60 and intraday low of 355.00. The net turnover during the day was Rs. 1126723.00.

Source : Equity Bulls

Keywords

ModiNaturals INE537F01012 PilibhitUnit Plant Machinery Disposal