Kesoram Industries suspends operations in hooghly rayon factory
Kolkata, Jun 22 (PTI) Kesoram Industries Ltd, a B K Birla group company on Tuesday announced its suspension of operations at its rayon factory in Hooghly district of west bengal due to steep slump in demand.
The company management counted the slump in demand due to COVID-19 led disruptions for the suspension of work till further notice.
"We had to issue a suspension of work as there is no demand for the product due to COVID-19 situation. If we continue our loss will triple from current losses," 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 and the pandemic has led to sharp slump in demand for textiles.
Rayon division contribution is negligible for the company that is struggling to bring down its Rs 1,900 crore debt to a sustainable level.
Kesoram Rayon was established in 1959. The division manufactures quality viscose rayon filament yarn (VFY), cellulose transparent paper and has a chemical manufacturing unit.