Celebrity Fashions Ltd has informed BSE that the Company have resumed the Manufacturing operations at its MEPZ Plant on June 03, 2008. Over 170 workers who have caused the illegal strike, which has led to the suspension of operations at its MEPZ Plant have been removed from its payrolls and have left the services of the Company.
Celebrity Fashions Ltd has informed BSE that the Company’s “Indian Terrain” showroom situated at No. 329, TTK Road, Alwarpet, Chennai - 600018 has been opened after renovation with Men’s and Women’s Wear from May 29, 2008.
Further the Company has informed that, the Company’s brand ambassador Mr. Kunal Kapoor also attended launching of women’s wear at Chennai.
Celebrity Fashions Ltd has informed BSE that the members of the Company through Postal Ballot had approved the Ordinary Resolution under Section 293(1)(a) of the Companies Act, 1956 authorising the Board of Directors to sell / transfer or otherwise dispose of the Company’s unit stated below by way of slump sale basis or otherwise:
a. To sell / transfer the undertaking situated at Plot No. K56, 57 and 59 of SIPCOT
Industrial Park, Irrungattukottai, Sriperumbudur, Kancheepuram District on a Slump Sale basis.
b. To relocate the manufacturing unit situated at Velachery Tambaram Road, Pallikaranai, Chennai and to sell that land and building.
c. To relocate other manufacturing units in any of the existing manufacturing unit and sell / dispose the Company’s Land and Building as they deem appropriate.
Celebrity Fashions Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 22, 2008, inter alia, has accorded the following:
a. To sell the undertaking situated at Plot No. K56, 57 and 59 of SIPCOT Industrial Park, irrungattukottai, Sriperumbudur, Kancheepuram District on a Slump Sale basis.
b. To relocate the manufacturing unit situated at Velachery Tambaram Road, Pallikaranal, Chennai and to sell that land and building.
c. To relocate other manufacturing units in any of the existing manufacturing unit and sell / dispose the Company’s Land and Building as they deem appropriate
The decision to sell the undertaking was taken considering the following and subject to the approval of the shareholders, Banks and SIPCOT:
1. The Company decided to focus significantly to the domestic branded market as against the current focus of exports markets due to the challenging business environment on account of Rupee appreciation against USD and the international competition.
2. The sale proceeds will also help the Company to repay the term loans in full availed for constructing the plant as well as the working capital loan availed from banks.