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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.
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