Ruia group seeks permission to close Jessop & Co
Kolkata: Pawan K Ruia controlled Jessop & Co, one of the oldest companies in the country, has sought West Bengal government's permission for its permanent closure.
"We have written to the labour ministry to permit us for permanent closure of the Dum Dum factory of Jessop with a copy to the Chief Minister Mamata Banerjee on November 1," sources in the company said.
"We have reached this stage due to two reasons - productivity in the factory had plummeted to negligible levels while the wage bill per month is around Rs 2 crore for some 600 workers and continuous theft in the factory," the sources said.
The officials of the heavy engineering company alleged that law and order was 'very bad' in the factory due to some local interferences.
The management personnel are finding it extremely difficult to operate in the factory and few CFOs had even quit the company in the last few months, they claimed.
Jessop trade unions had denied accepting productivity linked wage or halving the number of workers in the factory offered by the Ruia group management to keep the company going.
The group's spokesperson without divulging details confirmed that the letter seeking closure was sent to the government.
Ruias took over the PSU company in a divestment process in 2003 at Rs 18 crore.
Jessop has some 70 acres of prime land in Dum Dum in its possession. The company is not yet a BIFR case.
The company began its journey in 1790 when two companies Breen & Company and Butterfly Company were merged to form Jessop & Company.
In 1973 it was nationalised and then in 1986 it was placed under Bharat Bhari Udyog Nigam, an omnibus holding company created for sick heavy engineering units.
Dunlop, another major brand of the Ruia group, is facing liquidation and both its units Sahagunj in West Bengal and Ambattur in Tamil Nadu are closed.