Chemicals and textiles major GHCL has decided to defer all major capital projects, except those in advance stage, due to the ongoing coronavirus pandemic.
The company had no material production in April 2020, and currently its plants are operating at 50-60 percent utilisation levels based on demand outlook and labour availability.
The company doesn't see any liquidity challenge in the near term, with around Rs 397 crore of unutilised fund-based limits as on 30 April 2020 ensuring adequate liquidity.
The company commenced its manufacturing operations gradually with due approvals from the respective government authorities. Soda ash plant in Sutraparda, Gujarat restarted from 30 April 2020, while spinning units in Tamil Nadu restarted from 1 May 2020 and home textile plant in Vapi, Gujarat resumed from 5 May 2020, while ensuring necessary operating protocols.
The company has adequate supply chain available for finished products at plants and depots to meet customers' demand. Sufficient inventory of raw materials at plants is ensured for smooth manufacturing operations.