The Company Law Board (CLB) has suspended the board of the ailing Sanghi Polyesters Ltd and ordered the handing over of management control to a Management Committee entrusting them with the task of reviving the production facilities. On a petition by shareholders of the company and a section of employees, the CLB Bench based in Chennai and chaired by Ms Lizamma Augustine, in its November 8 order, directed that the affairs of the company would be looked after by the management committee headed by Mr Ravi Sanghi, Founder-Director, and Mr S.K. Samanta, whole-time director, in their capacity as executive members of the management committee.
The Hyderabad-based Sanghi Polyesters Ltd, with a capacity to manufacture about 200 tonnes a day and turnover of about Rs 500 crore, had stopped production in May 2010.
The present company board was given time to revive.
However, the plant had stopped production, necessitating a request to revive the company production by the shareholders.
“This order is like a Diwali gift for the employees as they have not received salaries for few months. The revival of the production will ensure that the company comes back to the past glory. We will first revive one unit and follow this up with another one,” Mr Piyush Vijayawargiya, production manager at Sanghi Polyester, said. Mr Ravi Sanghi told Business Line: “they plan to initially infuse about Rs 10-15 crore from their own resources and revive the production by the month-end. Gradually, the entire capacity of the plant would be revived. We have spent nearly 22 years on the project and we won’t like it to be closed down. In fact, at its peak, it had logged a turnover of Rs 550 crore.”
The company had about 650 employees at its peak. Of them, 550 are still with the company.
The CLB has directed the management committee to file a report on project revival and its progress within 15 days from November 15.
The company shares ended at Rs 3.30 as against previous close of Rs 3.20.