Bodal Chemicals Limited decided to permanently stop production activities at the manufacturing facilities of Unit-1, Unit­3 and Unit-4 located at Vatva GIDC, Ahmedabad, Gujarat. The company has manufacturing facilities of Dye Intermediate and Dyestuffs at Unit ­ 1, Dye Intermediate at Unit ­ 3 and Dyestuffs at Unit ­ 4 respectively. These are small and very old plants constructed between 1989 to 1993.

Due to technological changes these plants are no longer economically viable. Operating capacity has been very low at these plants for the last several years. Further, the Company has already increased capacity by doing debottlenecking for Dye Intermediate at UNIT 6 and UNIT 7. Hence, it will not result in any major production loss for the company.

Overall efficiency will improve due to the reduction of fixed overheads. Furthermore, Company will dismantle said manufacturing facilities and it will lead to reduction of less than 3% in the total tonnage production capacity of the company. The Board of Directors has decided to dismantle manufacturing facilities of Unit- 10, located at Plot No: 525, Village: Dudhwada, Ta: Padra, Dist: Vadodara, Gujarat, as Company has decided to permanently stop production activities at the said unit for LABSA product due to non-viability of the product.

No production has been carried out by the company at said unit in the last several years. Further, due to the dismantlement of this unit, there is no reduction in the total production capacity of the company.