Experts from Germany, Italy to assess RCL loss

HYDERABAD: As part of the damage assessment study, the Regency Ceramics Ltd (RCL) Monday said a team of technicians from Italy and Germany will visit the factory in Yanam shortly. With product

Published: 07th February 2012 04:28 AM  |   Last Updated: 16th May 2012 05:51 PM   |  A+A-

HYDERABAD: As part of the damage assessment study, the Regency Ceramics Ltd (RCL) Monday said a team of technicians from Italy and Germany will visit the factory in Yanam shortly. With production unlikely to commence any sooner, the company also said it was importing tiles to fulfill its longterm supply agreements with customers. "There's nothing left at the factory. We had stateoftheart imported manufacturing equipment. Now everything's damaged. We are conducting a damage assessment study to ascertain the losses," said G N Naidu, chairman of the RCL.

It is estimated that the loss could be over Rs 150 crore. Regency has an insurance cover to the tune of Rs 500 crore. According to Naidu, it will cost approximately Rs 700 crore to start a similar production unit afresh.

Labour unrest at Regency turned violent on January 27, 2012, leading to police firing and imposition of Section 144 in the town, causing extensive damage to the plant and machinery and the death of K C Chandrasekhar, president (Operations). Situated at Yanam in the Union Territory of Puducherry, RCL has over 1,400 labourers on rolls besides another 400 contract workers. The company spends over Rs 1 crore every month towards personnel expenses.

RCL started operations with a production capacity of 4,000 sq mts per day and as of December, it touched 44 lakh sq mts per day.

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