Castrol India to close down its Tamil Nadu plant

Stocks

oi-Shoaib MD

By Shoaib Md

Published: Saturday, July 16, 2011, 12:27 [IST]

Castrol India, the oil manufacturing and marketing company has stated that the company will be closing its plant located at the Tondiarpet in Chennai in the state of Tamil Nadu.

The Tondiarpet plant is one the Company's oldest plants in the country and was faced with a situation of high landed cost of base oil leading to a steep increase in its manufacturing cost per litre over the past several months. This had adversely affected the production activities in the plant.

Therefore, Castrol India, had decided to phase out the manufacturing activities at the plant and for this reason it has offered a Voluntary Retirement Scheme (VRS) to its employees working in the plant. Employees have opted to separate by availing of the benefits under the scheme.

It has also decided that with effect from July 31, 2011 it would close down its said plant at Tondiarpet in Chennai. The Company would decide at a later date the future of the plant, machinery and part of the land which it owns at this site.

Castrol is a brand of industrial and automotive lubricants which is applied to a large range of oils, greases and similar products for most lubrication applications. The Castrol brand is part of the BP's Group of Companies, but has retained its separate identity. In India the company is listed on both the Bombay Stock Exchange and the National Stock Exchange.

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