New Delhi: Atlas Cycles, one of the oldest and synonymous bicycles of India, shut down its last operational manufacturing plant in Sahibabad due to lack of funds to run the factory.
As per the company’s CEO N P Singh Rana, the shutdown is temporary and the company wishes to resume operations once it is able to raise a capital of Rs 50 crore by selling surplus land that the company owns.
The company shut down its last manufacturing plant on June 3 during World Bicycle Day. The company laid off 431 employees and they will continue to be paid “lay-off wages” when they mark their daily attendance, said Rana.
The Sahibabad manufacturing plant, the biggest in the country, started its operations in 1989. It was the last operational unit of Atlas Cycles that manufactured two lakh bicycles monthly.
AS per reports, a notice was put up on the gates of the Sahibabad factory 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. But now, there are no funds left. We are facing difficulty in arranging funds for our day-to-day operations. We are also unable to buy raw materials. In these conditions, the management is not in a position to operate the factory.”
However, the laid off employees have been asked to mark attendance except on holidays, failing which they would not be entitled to any lay-off wages.
The company plunged into losses in 2014 and its first plant in Malanpur was shut down in December 2014. The losses continued to decrease the growth of the company and its second plant in Sonepat, Haryana was also closed in February 2018.