Wednesday, July 27, 2005
Rains affect production at Asahi India's Taloja
THE production work at Taloja factory of one of the leading brands in glass segment in India, Asahi India Glass's near Mumbai has been completely stalled due to unprecedented rainfall in the State. Water has flooded key electrical and oil utilities causing energy starvation at the plant. While the actual cost of repair is unknown, it is estimated that the brand will take three to four weeks to bring the furnace back into production mode. This will have a substantial cost in terms of loss of sales and the consequential profits. Asahi Inda has decided to do a `hot repair' of the furnace. This unprecedented halt in production is expected to affect Asahi India's performance in the financial year 2006, in the approximate range of Rs 20-25 crore operating income, which is a preponement and not an extra expense. Started in 1987, Asahi India Glass Ltd, manufacturer of automotive safety glass and float glass, is a joint venture between the Labroo family, Asahi Glass Co Ltd of Japan and Maruti Udyog Ltd.