The Hindu Business Line : Production work at Asahi's Taloja factory stalled

THE production work at Asahi India Glass's Taloja factory near Mumbai has been completely stalled due to unprecedented rainfall in the State. Water has flooded key electrical and oil utilities causing energy starvation at the plant, according to a company release.

While the actual cost of repair is unknown, the company officials estimate that it will take three to four weeks to bring the furnace back into production mode. This will have a substantial cost in terms of loss of sales and the consequential profits, the release added.

Mr Sanjay Labroo, Managing Director and Chief Executive Officer, Asahi India, said, "We are making all efforts to recover from this accident. This will impact the company's performance in the financial year 2006, in the approximate range of Rs 20-25 crore operating income, which is a preponement and not an extra expense. I laud the efforts of company members at Taloja plant for their efforts to contain the situation." The company has decided to do a `hot repair' of the furnace.

Asahi India Glass Ltd, manufacturer of automotive safety glass and float glass, is a joint venture between the Labroo family, Asahi Glass Co Ltd of Japan and Maruti Udyog Ltd. It began operations in 1987.

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