The Chennai-based El Forge Ltd is selling its land at Thuraipakkam for ten crore rupees as part of its restructuring plan. The company, which made a loss of Rs 18 crore last year on a turnover of Rs 87 crore, will make a substantial profit on the transaction.
Company officials do not want to disclose the profit figure, pending conclusion of the transaction. The transaction is likely to be concluded in October and as such, the profits will be reflected in the accounts of the third-quarter.
The plant and machinery at Thuraipakkam have been moved to Appur, where a new facility has come up at an investment of hundred crore rupees.
Mr K. V. Ramachandran, Vice-Chairman and Managing Director, said that the company is also shifting machinery from its leased facility in Gumidipoondi to Appur. It also has plant in Hosur. Across these plants, the company has an installed capacity is 21,600 tones a year.