COVID-19 effect: Indoworth India shuts its Butibori plant
   Date :08-May-2020

Indoworth India Limited_
 
 
Business Bureau :
 
Call it ill-effect of COVID-19 or recession in the international market, Indoworth India Limited, Butibori, a leading manufacturer, supplier of wool yarn and polywool yarn has closed down its operations rendering its 400 employees jobless. The company, on May 2, had put up a notice on the its gate saying that due to unfavourable market conditions, the company is temporary discontinuing its operations. Sources said, Indoworth India Limited, was a 100 per cent export-oriented unit (EOU) and marketing its products to countries like Japan, US, UK, Korea and United Arab Emirates.
 
In 2018, the company had also closed its two plants situated at Raipur (Chhattisgarh) and Malda (West Bengal) which were manufacturing fabric and wool yarn. The Fabric Division at Butibori (Nagpur) was closed somewhere in 2018. Sources said, the company was importing its raw material from Australia. However, after the outbreak of the COVID-19 globally, it had become difficult for the company to cope with the situation. It was facing paucity of raw material as well as buyers in the market. The company started its Butibori plant wayback in 1994. Since inception, it was facing problem of funds as financial institutions turned their back. It anyhow managed to face the circumstances by borrowing loans from the market and continued its manufacturing activity.
 
The production was 65 per cent of its installed capacity. Sources added, for the month of March, the company had given 85 per cent salary to its workers, 100 per cent to staff and 35 per cent to senior level officials. Some skilled workers deployed by the company were outsiders who had left for their respective native places after the closure of the company. It would be difficult for the management of Indoworth India Limited to recall its staff even if it resumes operations by Diwali. “Now, with the outbreak of the COVID-19, one cannot predict when normalcy will be restored as daily COVID-19 affected persons are increasing,” sources added. The turnover of the company in the last financial year was Rs 150 crore.