El Forge Ltd., headquartered in Chennai, is in the process of divesting its land located in Thuraipakkam for a price of ten crore rupees, as part of its broader restructuring strategy. Despite facing a challenging financial year last year, where it reported a loss of Rs 18 crore on a total revenue of Rs 87 crore, this land sale is projected to yield a significant profit for the company.
While officials have refrained from publicly disclosing the exact figure of the anticipated profit until the transaction officially concludes, it is expected that the deal will finalize in October. Consequently, the profits from this sale should be reflected in the financial statements for the third quarter.
Meanwhile, the plant and machinery that were previously situated at Thuraipakkam have now been relocated to a new facility in Appur, which has come with an investment of one hundred crore rupees.
Mr. K. V. Ramachandran, the Vice-Chairman and Managing Director of the company, also revealed plans to transfer machinery from their leased facility in Gumidipoondi to Appur. Additionally, they maintain a plant in Hosur, leading to a robust installed capacity across these facilities, amounting to 21,600 tonnes annually.