Companies

Kesoram Industries suspends work in rayon factory

PTI Kolkata | Updated on June 22, 2021

Work in the 2,500-man loss-making unit suspended till further notice

BK Birla group company Kesoram Industries Ltd on Tuesday suspended work at its rayon factory in West Bengal’s Hooghly district due to fall in demand.

The company management blamed the Covid-19-led disruptions for the slump in demand. Work has been suspended till further notice.

Also read: Kesoram Industries looking to raise ₹1,604 crore via NCD route

"We had to issue a suspension of work as there is no demand for the product due to the Covid-19 situation. If we continue, our loss will triple from current level," a senior company official told PTI.

The company employs 2,500 people in the loss-making rayon plant. The finished products are used in textile and textile decoratives. But the pandemic has led to a sharp slump in the demand for textiles.

The rayon division’s contribution is negligible for the company that is struggling to bring down its ₹1,900- crore debt to a sustainable level.

Kesoram Rayon was established in 1959. The division manufactures quality viscose rayon filament yarn (VFY), and cellulose transparent paper. It also houses a chemical manufacturing unit.

Published on June 22, 2021

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