The Hindu Business Line : Bombay Burmah laminate unit relocating to Uttarakhand

Pune June 25 Bombay Burmah Trading Corporation, belonging to the Wadia Group, is closing down its decorative and industrial laminate manufacturing unit at Akurdi, near Pune and relocating it to Pantnagar in Uttarakhand.

Confirming that operations in Pune have been closed down from March 31, Mr Sanjay Badri, CEO of the company, said that the process of shifting the machinery to the new plant is currently underway.

Capacity increase

The company acquired the Uttarakhand land a couple of years ago and has invested Rs 25 crore to more than double the capacity to cater to the higher demand for decorative laminates generated by the booming housing and retail segments.

"Trial production at the new plant began last August and commercial production started in October," Mr Badri said.

Once the new facility goes on full steam, the Rs 50-crore annual revenue generated by the company is expected to double, he added.

The company commenced production at the Uttarakhand facility in October 2006.

The division makes decorative laminates Formica and Sunmica under a brand licence from Formica, the parent company.

Main reasons

It set up its Pune operations in the early 60s and despite the clear lead, has been just about managing to break even. Citing the growing power crunch and high outgo through octroi as the two main reasons for relocating their production facility, Mr Badri denied that "unlocking land value" was a consideration for the move. He added that there were no plans as yet for the 18 acres of prime industrial land that will lie vacant once the shifting is completed.

To prepare for the relocation, Formica India had announced a Voluntary Retirement Scheme last year and set March 31 as the cut-off date. About 175 workers opted for it involving a total payout of Rs 12.51 crore. The amount will be accounted for during this fiscal, Mr Badri said.

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