June 22, 2024

Bodal Chemicals Announces Permanent Closure Of Several Manufacturing Units

Bodal Chemicals has announced the permanent cessation of production activities at its manufacturing facilities in Unit-1, Unit-3, and Unit-4 located at Vatva GIDC, Ahmedabad. These units, which have been producing dye intermediates and dyestuffs, were constructed between 1989 and 1993. Due to technological advancements, these older plants have become economically unviable and have been operating at low capacity for several years.

The company has increased its production capacity through debottlenecking processes at Unit-6 and Unit-7, which will offset any major production losses from the closure of the older units. This strategic move is expected to improve overall efficiency by reducing fixed overhead costs. The closure of these units will result in a less than 3% reduction in the company’s total production capacity.

In addition, the Board of Directors has decided to dismantle the manufacturing facilities of Unit-10, located at Vadodara, Gujarat. The company has permanently stopped production activities for LABSA products at this unit due to non-viability. No production has been carried out at this unit for several years, and its dismantlement will not affect the company’s total production capacity.

Bodal Chemicals Ltd remains committed to optimizing its operations and maintaining efficiency in its production processes.

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