Hit by rising losses and erosion in net worth, Hinduja group foundry arm Hinduja Foundries has decided to close its ductron castings unit in Hyderabad. The company also appointed Markus Wermers as its new managing director effective August 13, the company informed the stock exchanges on Friday.
Set up way back in 1970s, the ductron unit has a capacity of 36,000 tonne per annum and has a high pressure line and BMD machines. Pursuant to the restructuring initiative undertaken to improve overall profitability and performance, the company announced a voluntary retirement scheme at ductron castings unit which was accepted substantially by all the employees of the unit and the board of directors at their meeting held on Friday, accordingly, approved the closure of the unit. The company has said that exceptional items of Rs 54.80 crore and Rs 70.98 crore for the quarter and nine months ended June 30, 2015 mainly comprise expenditure incurred towards voluntary retirement arrangements, impairment losses and provision in respect of non-recoverability towards assets pursuant to such restructuring is continuance of business operations.
Hinduja Foundries is one of the largest foundries in the country with the capacity to produce cylinder block and head ranging from 25 kg to 500 kg. From castings for automobiles and tractors to industrial engines, construction equipment and power generation equipment, Hinduja Foundries meets the stringent requirement of diverse segments.