Bengal Tea & Fabrics has decided to shut down its 9600 spindles along with back process and winding in spinning section of the Textile Division located at Asarwa Mills, Ahmedabad with Effect from May 1, 2017. The installed capacity of spinning section after reduction would be 14352 spindles and production would be mostly for captive consumption. Due to this step, 74 permanent workers of the Textile Division will be retrenched. The said reduction in capacity would result in reduction in the top line of the Company by about Rs 30 crore on an annualized basis. The sale proceeds of the machineries to be scrapped would be utilized for payment of retrenchment compensation to workers and balance for augmentation of working capital of the Textile Division of the Company.
Bengal Tea & Fabrics is engaged in the business of tea and textiles. The Company's principal products/services include black tea, cloth cotton fabrics and synthetic yarn.
