Kesoram Industries puts rayon factory under suspension of work

B K Birla group company Kesoram Industries Ltd on Tuesday has put its rayon factory under suspension of work in West Bengals Hooghly district.The company management blamed 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. The division manufactures quality viscose rayon filament yarn VFY, cellulose transparent paper and has a chemical manufacturing unit.

B K Birla group company Kesoram Industries Ltd on Tuesday has put its rayon factory under suspension of work in West Bengal's Hooghly district.

The company management blamed 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.