Get Top latest market news, Stock Market Views, Stock Market Updates and analysis on stock, derivatives, commodity and IPO markets. Get all Stock market news, BSE, NSE, Sensex Nifty, world markets, Indian markets, stock recommendation, Dalal Street, Day trading, futures, options, SEBI, market news, Business and other Financial News.

69 Yr Old India’s Largest Cycle Maker Shuts Down Forever on World Bicycle Day, 700 Employees Jobless; Huge Setback For Make In India Initiative

atlas cycles, local for vocal, made in india, Make In India, Atlas Cycles factory, Atlas Cycles shut, Atmanirbhar Bharat, Atlas Share Price

Atlas Cycles – a name that turned into an equivalent word for bicycles in India – has closed its last assembling unit in Sahibabad, simply outside Delhi, referring to the absence of liquidity and assets to run the industrial facility.

The organization’s Chief Executive Officer NP Singh Rana, nonetheless, demands the shutdown is just impermanent, and the organization will continue tasks once it can raise around Rs 50 crore by selling surplus land.

The organization shut the production line on June 3, which incidentally was likewise the World Bicycle Day. It laid off 431 outstanding workers, however, Rana demands they keep on being on the move of the organization and will be paid “lay-off wages” after stamping participation every day.

While he didn’t expound on the installment to workers, “lay-off wages” ordinarily equivalent to 50 percent of fundamental pay and dearness recompense.

The plant, the greatest in the nation, began in 1989. It was the last operational plant of the Atlas Cycles with a month to month creation of more than two lakh bicycles.

Atlas Cycles Workforce asserted that the unit was closed without notice.

On Wednesday, a notification was posted on the manufacturing plant entryways that read: “… the organization had been going through a money related emergency for quite a while and had depleted every one of its assets to keep the industrial facility above water. Be that as it may, presently, there are no assets left. We are confronting trouble in orchestrating assets for our everyday tasks. We are additionally incapable to purchase basic raw materials. In these conditions, the administration isn’t in a situation to work the processing plant.”

Be that as it may, the laid-off workers and staff have been approached to stamp participation with the exception of on vacations, bombing which they would not be qualified for any lay-off privileges.

The organization began making misfortunes in 2014 and its first plant in Malanpur was closed down in December 2014. The misfortunes kept on damaging the development and its second plant in Sonipat, Haryana was likewise shut in February 2018.

The Sonipat plant was the principal unit built up in 1951 by Jankidas Kapoor. Beginning from a humble tin shed at Sonepat, Atlas Cycle Industries Ltd shot into a 25-acre of land manufacturing plant complex in only a year.

It before long turned into India’s biggest bicycle producer and was the official provider of bicyles to the 1982 Asian Games held in the national capital.

The monetary crunch it looked since 2014 abandoned awful to more terrible in the last one-and-a-half years and the coronavirus lockdown just aggravated it.

“We have not shut down the plant. Truth be told, there has been a great deal of misinformation…The plant is open, we have not fired any worker. We have just incidentally suspended the tasks,” Mr Rana told PTI.

The organization had on June 2 educated bourses the Sahibabad unit of the organization isn’t in a situation to continue producing tasks because of budgetary limitations.

Thus, the workforce of the Sahibabad unit of the organization will be laid off with impact from June 3, 2020, till a satisfactory course of action of assets is made,” Atlas Cycles had said in an administrative documenting.

Clarifying the circumstance, Mr. Rana stated, “All the workers are on the moves of the company…Laying off doesn’t imply that individuals have been fired or their business is stopped. Laying off is an arrangement in the law where individuals are required to come once in a day to sign their attendance…So at present, they are on the moves of the organization and they will keep on getting their business. They will get the lay-off wages for their period.”

He said the laborers’ quality at the plant was 800 out of 2017 yet the “fund circumstance was getting from awful to more terrible in the last one-and-a-half years, directly we have laid off just 431 representatives”.

Remarking out and about ahead for Atlas Cycles, he stated, “We have just set up an application to the NCLT looking for authorization to sell our overflow land. When we get the authorization, we will auction our excess land and the overflow land cash will be a lot higher to satisfy back all the obligations of providers and our kin and we will continue manufacturing operations.”

Automobile Crisis: Rs 35,000 Crore Of Cars & 17,000 Crore of Two Wheelers Lying Unsold In India

When asked how many stores the organization was hoping to raise by selling surplus land, Mr. Rana stated, “We have a great deal of land bank. We are just searching for a little store to run everyday activities. We are simply searching for Rs 50 crore right now.”

The Sahibabad unit has an introduced limit of 40 lakh units for each annum. Nonetheless, the organization was delivering about 1.5 lakh to 2 lakh bikes for every month, he said.

Begun in 1950 from Sonipat, Atlas Cycles developed to rise as India’s biggest cycle producer in 1965. It even wandered abroad and got one of the top bicycle manufacturing organizations on the planet with an ability to deliver 40 lakh bikes every year.

Biggest Recession in 20 years of Automobile Industry; $57 Billion Worth Auto Parts & Components Industry In Shambles

In any case, as the method of portability changed with the appearance of autos, Atlas Cycles started to confront headwinds, which reached a crucial stage as of late.

“We have not had the option to support and we can’t assemble assets to proceed with our everyday activities. So we put the tasks (at Sahibabad) in suspension for a transitory period,” Rana stated, including “the coronavirus pandemic was another hit to us”.

He, in any case, said the organization has not surrendered.

Hero MotorCorp invests Rs 20 cr in Electric Scooter start-up Ather Energy

Hero MotoCorp Renews Deal With Tiger Woods as Global Corporate Partner

“Request isn’t an issue, the market is excellent. We have a solid vendor and provider base. We are a 70-year-old brand and very much acknowledged in the market. We are hoping soon that we will do a comeback,” Mr Rana demanded.

Leave a Reply

Your email address will not be published. Required fields are marked *