Kesoram Industries Ltd, a BK Birla group firm, ceased operations at its rayon mill in West Bengal’s Hooghly district on Tuesday due to a drop in demand.
The company’s management blamed the work suspension on a drop in demand caused by COVID-19-related difficulties. “We had to suspend work because there is no demand for the product owing to the COVID-19 situation.”
If we continue, our losses will increase,” a top firm official told PTI. In the loss-making rayon facility, the company employs 2,500 workers. The completed products are utilised in textiles and textile decoratives, and the pandemic has caused a significant drop in textile demand.
Rayon division contribution is insignificant for the company, which is striving to reduce its Rs 1,900 crore debt to a manageable level. Kesoram Rayon was founded in 1959. The division produces high-quality viscose rayon filament yarn (VFY), cellulose translucent paper, and a chemical facility.