Facing Disruption In Operations Due, To Non-Payment, Says Future Supply Chain

Future Supply Chain Solutions Ltd on Friday said it is facing "frequent disruption of business operations" at a few of its warehouses due to non-payment/part payments to the labour and on-roll manpower. Its labour and on-roll manpower are "intermittently disrupting" the business activities, said FSCSL (Future Supply Chain Solutions Ltd) while sharing updates on its business operations to bourses. Following this, the management of the company apprehends that prolonged disruption of contracts by clients would "adversely affect the business operations, which would ultimately disturb the ability of the company" to service its monetary obligations and various others.

The debt-ridden company is facing disruptions at a few of its warehouses, including the largest one situated at MIHAN - Nagpur, said FSCSL without sharing the exact number of such units. "The said disruption is mainly due to non-payment/part payments to the labour and on-roll manpower who are intermittently disrupting the business activities at various warehouse locations mentioned above," it said. FSCSL operates warehouses across the country. In Nagpur, FSCSL has one of the largest and the most highly-automated distribution centres in India.

"The company has been requesting its bank to release certain critical payments out of available funds in its accounts, such as payment of rent, labour wages, salary etc, to ensure continuity of the business operations, since the company has not made any default in repayment of its loan obligation so far," it said. FSCSL was part of the 19 group companies operating in retail, wholesale, logistics and warehousing segments, which were supposed to be transferred to Reliance Retail as part of a Rs 24,713 crore deal announced in August 2020. The deal was called off by the billionaire Mukesh Ambani-led Reliance Industries Ltd in April this year.

(PTI)