HIL stops operations in Chennai plant due to labour issues

CK Birla Group firm HIL Ltd, formerly Hyderabad Industries Ltd, said that it has stopped operations of AAC Block manufacturing unit at Chennai due to labour issues. The builing material manufacturing firm also said that its sheeting manufacturing unit at Balasore, Orissaa has been affected due to cyclone Phailin even as it has stopped its operations of sheeting manufacturing unit at Wada, Maharashtra in view of the sluggish demand in western market.

The company today informed Bombay Stock Exchange (BSE) that it has stopped its operations of the manufacturing unit at Chennai from October 14, onwards.

"This is done in view of the unfair labour practices being initiated by the Company’s contract workmen by resorting to go slow practices from September 23, 2013 onwards and subsequently denying adhering to the advices of the Assistant Commissioner of Labour (Conciliation) after several rounds of conciliation meetings," said the company announcement.

"The conciliation proceedings are pending before the Assistant Commissioner of Labour (Conciliation) and the company shall commence the operations of the said plant immediately on reconciliation of the same," it added.

The Company has also stopped its operations of the sheeting manufacturing unit at Wada, Maharashtra in view of the sluggish demand in western market.

Meahwhile, the Company’s sheeting manufacturing unit at Balasore, Orrisa have been affected due to breakdown of power transmission lines due to the cyclone Phailin that hit Orissa and there has been water logging inside the plant resulting in minor damage of equipment and small quantities of Finished Goods and Raw material have also been damaged.

"The entire fixed assets, Finished Goods and Raw material are completely insured and Company has initiated the process of insurance claim. The operations at the said unit are expected to commence in a day or two immediately on restoration of power transmission lines," added the company announcement.

According to the company's Annual Report for 2012-13, HIL has 13 plants, 53 depots, over 200 trained franchise and a network of over 4000 strong trade channel partners spread across the country.