ITC shuts down two WIMCO plant
"In the present form, WIMCO did not perform well. So, we have already closed down two of the plants. We are restructuring it," ITC chairman and managing director Y.C. Deveshwar told shareholders at its 100th annual general meeting.
Wimco Ltd was acquired by Russell Credit Limited, a 100 percent subsidiary of ITC, July 1, 2005.
Deveshwar attributed the poor performance of WIMCO to the differentials in duties between handmade and non-handmade sectors.
According to the annual report, WIMCO had posted a net loss of around Rs.60 crore during 2011-12 fiscal.
The company has already given voluntary retirement to all the employees of the two factories. The one-time separation has cost the company Rs.37 crore.
However, as the location of the two factories was good, the infrastructure there will be used for manufacturing new products the company has entered into of late. (IANS)
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