Regency Ceramics is in the process of calling in international ceramic consultants and experts to recommend on whether revival of its Yanam unit is possible, after it was severely damaged in the wake of a violent labour unrest that left two dead and many injured eleven days ago.
Uncertainty looms large over the fate of the Yanam unit, as the management of the company is still not sure whether it should be revived, relocated or sold.
Mr G. N. Naidu, Chairman and Managing Director of the company, said the help of international experts from Italy and Germany was being sought. “They (the experts) are likely to visit the plant in the next 15 days, after the police complete their preliminary investigation,” he told media persons here on Monday.
“As of now, we have no idea of the extent of damage and whether the unit can be revived. There are unconfirmed reports that the revival of the unit may not be feasible,” he added.
Cost factor
Mr Naidu said the cost of relocating the unit (with a capacity to produce the same 40,000 square metres a day) would be about Rs 700 crore.
Meanwhile, the company is importing ceramic tiles and also sourcing it from others to fulfil the existing supply contracts.
The company has declared a lock-out on the ground that “it is highly essential at this juncture to protect the premises for various reasons such as to help assess the damage by insurance companies and financial institutions.”
“Once the police come to a conclusion, the company will then take stock of the situation and the steps to be taken,” Mr Naidu said.
The company has a term loan debt component of around Rs 80 crore and around Rs 35 crore in working capital loans.