Eukal Fuel Systems Limited has decided to shut down its Pu Ducherry unit with effect from March 12 as the products have become completely obsolete and unusable due to technology transition.
In a regulatory filing, the company said it has decided to completely stop manufacturing activities at its Plant II located at PIPDIC Industrial Estate in Puducherry from March 12.
Government-imposed restrictions on emission norms, technological changes, and the transition from BS IV to BS VI and electric vehicles were attributed by the management to completely obsolete its products.
In addition, it faced intense competition as alternative products were considered far-fetched in fuel systems and diversification.
“As such, there is no alternative business or business prospect for us to continue our operations,” it said.
The sales turnover from Plant II was on a decline since FY19. In FY2011, it fell to Rs 23 crore from Rs 140 crore. For the six months ending September 21, it was only ₹10 crore.
The company was manufacturing two-three fuel management system part, four wheeler MPFI part and four wheeler carburetor at the plant.
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