Atlas Cycles - a name that became a synonym for bicycles in India - has shut its last manufacturing unit in Sahibabad, just outside the national capital, citing lack of funds to run the factory..He, however, said the company has not given up.On Wednesday, a notice was pasted on the factory gates that read: "the company had been passing through a financial crisis for several years and had exhausted all its funds to keep the factory afloat. We are facing difficulty in arranging funds for our day-to-day operations.Employees claimed the unit was shut without notice. We will bounce back," Rana insisted.The company shut the factory on June 3, which ironically was also happened to be the World Bicycle Day.Its CEO N P Singh Rana, however, insists the shutdown is only temporary, and the company will resume operations once it is able to raise around Rs 50 crore by selling surplus land.
We have only temporarily suspended the operations," Rana told PTI. We are only looking for a small fund to run the day-to-day operations. It laid off 431 remaining employees, though Rana insists they continue to be on the roll of the company and will be paid "lay-off wages" upon marking attendance daily.So currently they are on the rolls of the company and they will continue to get their employment. But now, there are no funds left..5 lakh to 2 lakh bicycles per month, he said.The plant is very well open, we have not terminated any employee."Demand is not a problem, the market is very good.The Sonepat plant was the first unit established in 1951 by Jankidas Kapoor.While he did not elaborate on the payment to employees, "lay-off wages" typically equal to 50 per cent of basic salary and dearness allowance. We are just looking for Rs 50 crore at the moment.
In these conditions, the management is not in a position to operate the factory. Once we get the permission, we will sell off our surplus land and the surplus land money will be much higher to pay back all the dues of suppliers and our people and China wholesale Thermostatic Shower Panels we will resume production. As soon as we get permission we will advertise to sell the land and as soon as we get the funds from the prospective buyers we will resume production.Explaining the situation, Rana said, "All the employees are on the rolls of the company. They will get the lay-off wages for their period.Laying off is a provision in the law where people are required to come once in a day to sign their attendance.Hence, the workforce of the Sahibabad unit of the company will be laid off with effect from June 3, 2020, till adequate arrangement of funds is made," Atlas Cycles had said in a regulatory filing.The company had on June 2 informed bourses the Sahibabad unit of the company is not in a position to resume manufacturing operations due to financial constraints.