Greaves Cotton Ltd to sell equipments to clear losses
Greaves Cotton Ltd, an engine and infrastructure equipment maker is in talks with multiple entities to sell its construction equipment manufacturing plants. It will sell all three assets at its Gummidipoondi, Tamil Nadu facility, Narayan Barasia, chief financial officer of Greaves Cotton, said in a telephone interview on Tuesday.
On Monday, the company had said that it has permanently shut manufacturing at its construction equipment plant at Gummidipoondi because it had become unviable and to avoid incurring further losses. The sale will mark Greaves Cotton’s exit from the construction equipment manufacturing business and comes at a time when the industry is grappling with a sharp drop in demand led by a slowdown in the infrastructure sector in the country.
Stalled projects, land acquisition challenges and delays in environmental clearances for projects have affected the construction equipment industry. There are a huge amount of losses that has been incurred by the company. In order to do away with so the company is trying to sell out their equipments and get the amount so that they can do away with the losses.
Source: Mint
delays in environmental clearances, Greaves Cotton Ltd, Gummidipoondi, land acquisition, Narayan Barasia, Tamil Nadu facility
