CHENNAI: Industrial paint manufacturer
today said it has not finalised any deal to sell the Chennai unit along with the company’s other surplus assets.
“…we have intimated that all the manufacturing activities at Perungudi in Chennai has been stopped, as such the assets have become surplus to our requirements. It was also mentioned, the Board has given its in-principle approval to explore various options for monetization of surplus assets of the company,” Kansai Nerolac Paints Ltd said in a BSE filing.
Responding to reports of sale of the Chennai factory, the company said, “At this point of time, no deal has been finalised and no decision on the same has been taken with regard to sale of Company’s land at Perungudi, Chennai”.
About the Chennai unit which was closed in 2013, the company said it decided to close the factory due to high wages and low productivity and the machinery and the plant have become outdated and unproductive.
“Expansion of the unit was also not feasible. All the workmen of the company opted for voluntary retirement scheme. The assets have become surplus to our requirements,” it said.
Shares of the company today closed at Rs 225.65 apiece, up 0.69 per cent on the BSE.