Greaves Cotton has permanently closed the manufacturing operations at its construction equipment business plant at Gummidipoondi near here.
In a filing to the stock exchanges, Greaves Cotton said that the shut down was due to non-viability and to avoid incurring further losses.
Industry sources said that this division employed close to 200 people and it was incurring losses for quite sometime. The closure was in line with the company’s decision to either hive-off or close down loss-making units.
During August, the company had announced that it had suspended the operations due to challenging market conditions.
“Since the manufacturing operations have been permanently closed, the related assets will eventually be disposed off. Till date, the Company has neither negotiated nor signed any MoU with any party for disposing off the assets,” the note said.
At Gummidpoondi, Greaves Cotton was manufacturing the complete range of concrete equipment such as transit mixers, concrete pumps and batching plants, and compaction equipment such as vibratory soil compactors, heavy tandem rollers and light tandem rollers.
Greaves’ construction equipment was mainly used for construction of roads, bridges, buildings and ready mix concrete applications.
The annual report for 2013-14 said that the road construction segment had been on a recessionary trend since the financial year 2011-12, and the negative trend continued during the year too.