Kesoram Industries Ltd has suspended work at its spun pipes and foundries unit in West Bengal with immediate effect as it was incurring losses, a senior official said on Friday.
The unit has been suffering from daily low production, quality problems and high rejection, which led to a serious financial crisis, it said in a statement to the stock exchange.
"It was a small and a loss making unit and we have closed it," Director, S.K. Parikh said.
The annual turnover from the unit was 860 million rupees, he said. Kesoram Industries had a net sales of 22.04 billion rupees for the year to March 2007.
Shares in the company were trading 0.17 percent up at 372.50 rupees in a firm Mumbai market.