Spice Islands to shut down Bangalore unit

Spice Islands Apparels Ltd has informed that the Bangalore production unit of the Company (situated in a leased premises) is now proving uneconomical, particularly due to

i. High level of real estate and rentals
ii. Paucity of labour
iii. Shrinkage of margins due to strengthening of Rupee
iv. Increased input cost, etc.

In view of the above it has been decided by the Board of Directors (subject to approval of shareholders) to dispose off machinery, utilities, furniture and fixtures situated at a leased premises at Peenya, Bangalore. However despite this the Company will continue to manufacture garments either by relocating the same in due course. In the interim, production of garment (woven) will be continued by sub-contracting.

The Company has further informed BSE that the approval of shareholders can be obtained through Postal Ballot. It has therefore been decided to take approval of shareholders, through Postal Ballot, to the proposal of selling off machinery, utilities, furniture and fixtures at Peenya, Bangalore.