The board of directors of Bajaj Electricals, in its meeting on January 3, 2022, approved the proposal of permanent closure of operations at the company’s manufacturing unit located at Shikohabad in Uttar Pradesh.
The step has been taken in view of the unsatisfactory performance of the unit with continued operational losses in spite of attempts to turn it around. It has become unviable to continue running the unit, Bajaj Electricals said in a stock exchange filing.
The Shikohabad unit accounted for total revenue of Rs.33.46 crore for the year ended March 31, 2021, representing 0.72 per cent contribution to the company’s total income for that year. On the other hand, the unit recorded a loss (before tax) of Rs.4.44 crore during the same period, Bajaj Electricals said.
The Shikohabad unit earlier belonged to Hind Lamps Ltd and the same was acquired by Bajaj Electricals Ltd in 2018.
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It was in 2015 that Bajaj Electricals Ltd first proposed to acquire the manufacturing facilities of Hind Lamps Ltd. The latter was engaged in the manufacture of glass bulbs, halogen bulbs and aluminium caps, with two manufacturing facilities – Shikohabad (Uttar Pradesh) and Parwanoo (Himachal Pradesh). Incorporated in 1951, Hind Lamps has since long been a sick company, registered under the Board for Industrial & Financial Reconstruction (BIFR).
