Vardhman Polytex Ltd. To Close Down Bhatinda Plant

Business

Vardhman Polytex Ltd. To Close Down Bhatinda Plant

The Board of Directors of Vardhman Polytex Limited has approved the closure of operations at manufacturing unit of the company located at Badal Road, Bathinda.

The company has stated non-viability due to deteriorating condition of the machines, high operational cost, operational losses as the primary reasons for the closure of the unit. In FY2023, the unit had recorded a revenue of Rs 252.97 Crore from operations, accounting for 41.09% of VPL’s total revenue.

The current net worth of the company is negative at (-) Rs 362.31 Crore.

Vardhman Polytex Limited was originally promoted by Mohta Group and PSIDC under the name and style of Punjab Mohta Polytex Limited. In 1987, Mahavir Spinning Mills Limited (MSML) took over the management of the company, becoming a subsidiary of MSML.

After the family settlement, in January 2003, the company was part of the Oswal Group. The company kept investing in its spinning capacity in its Bhatinda plant over the years while also setting up textile units in Ludhiana and Nalagarh.