No decision on critical issues at MRL board meet

Our Corporate Bureau

New Delhi, Aug 31: The Modi Rubber Ltd (MRL) board meeting remained inconclusive on Friday with no decision taken on issues like the ongoing strike at its plant at Modipuram and Ravi Rajan committee report on restructuring.

It has been decided in the board meeting that Mr Rajan needs a little more time to work on the report on restructuring and cost cutting to bring the company back on track.

Further, no decision was taken on the closure of the company’s tyre manufacturing plant at Modipuram.

The company has lost a turnover of over Rs 40 crore as a section of workers have refused to accept a production-linked salary package. Going by the current production levels or capacity utilisation, the package is likely to result in a pay cut of about 33 per cent.

It is also not known whether managing directors VK and BK Modi have managed to raise their shareholding to over 50 per cent after the open offer. The future course of action by the financial institutions (FIs) will depend on the shareholding pattern which would emerge out in due course.