The board of Skipper , as part of cost reduction initiative and optimisation of capacity utilisation in the markets where the company has a strong foothold, has decided to shift the manufacturing facility from Sikandrabad, Bulandshahar, Uttar Pradesh, to Madhabpur, Uluberia, Howrah, West Bengal, probably within December 31.
The plant belongs to the polymer division of the company and is based on the asset-light model wherein the land and building has been taken on lease and the plant and machineries belong to the company. The shifting will reduce the fixed cost without reduction in overall capacities of the division which stands at 51,000 tpa. The company will continue to serve the northern market through dealers and a distribution network supported by the sales & marketing team.
The unit contributed around ₹17.36 crore (0.85 per cent) to turnover and ₹12.36 crore (1.94 per cent) to net worth during FY18. Further, the board has entrusted the management with exploring and bringing to the table more options and strategies for better synergies and overall cost reduction in the polymer division. Shares of Skipper closed at ₹96.10, down 3.76 per cent on the BSE.