Companies

Oil Country Tubular to relocate certain manufacturing facilities

Our Bureau Hyderabad | Updated on December 11, 2017 Published on December 11, 2014

Oil Country Tubular Limited has decided to relocate some of the manufacturing facilities to a convenient location, possibly in Andhra Pradesh near Nellore, keeping in view the stir by employees, future expansion and proximity to port.

The board of directors of the company, which met here today, reviewed the company's operations and noted the issue relating to workers striking work illegally in a concerted manner without any notice or reasonable cause, resulting in disruption in the manufacturing operations.

The company, which is into oil exploration equipment and services, has a manufacturing unit at Narketpally in Nalgonda district of Telangana near Hyderabad.

Sridhar Kamineni, Managing Director of the company, informed the BSE that partial operations are continuing with the engineering staff.

The board said the levy of liquidated damages by customers were due to the delay in the supplies. The supplies were affected due to the illegal strike by the workmen. This has impacted the performance and the profitability during the year.

Under the circumstances, the company is cautious in accepting orders from customers as the orders are predominantly delivered abroad.

In the statement, the Board said it discussed the prevailing power shortage and other operational factors and decided that the company should look at options to relocate certain facilities which can immediately go into operations in a short period. The relocation is also keeping in view the future expansion and the availability of power, water and infrastructure in close proximity to the sea ports.

Recently, the company management raised the issue of strike by a section of employees unions, which has caused damage to the company business and prospects. Citing this, it had indicated its intent to relocate the factory. The board decision endorses that thinking.

The company closed the last financial year with revenues of Rs 358 crore. Oil Country shares ended at Rs 38, down 1.30 per cent, on the BSE on Thursday.

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Published on December 11, 2014
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