By IANS,
Kolkata : Birla Corp, the flagship company of the M.P. Birla group, has informed stock exchanges that a “layoff” would take place at its vinoleum division from Tuesday.
“Birla Corporation Ltd has informed BSE (Bombay Stock Exchange) that a layoff has been declared with effect from November 17, 2009 at the company’s unit, Birla Vinoleum, Birlapur on account of lack of demand of the product,” it said in a statement.
Birla Corp is present in cement, jute, auto trim products, vinoleum, carbide and gases, and textiles.
The company is headed by Harsh Vardhan Lodha, son of the late R.S. Lodha — the disputed beneficiary of the M.P. Birla group chairperson Priyamvada Birla’s will that bequeathed the entire assets of the group to him.
The vinoleum division is in operation since 1991, with a production capacity of 48.6 lakh square metres of cushion vinyl flooring, PVC coated wallpaper, coated fabric and cellular plastic sheet.
The company in its annual report had earlier said: “The capacity utilization at the Birla vinoleum division of the company was lower mainly on account of slowdown in demand due to recessionary conditions.”