New Delhi: Atlas Cycles - a name that became a synonym for bicycles in India - has shut its last manufacturing unit in Sahibabad, just outside the national capital, citing lack of funds to run the factory.
Its CEO N.P Singh Rana, however, insists the shutdown is only temporary, and the company will resume operations once it is able to raise around Rs 50 crore by selling surplus land.
The company shut the factory on June 3, which ironically was also the World Bicycle Day.
It laid off 431 remaining employees, though Rana insists they continue to be on the roll of the company and will be paid "lay-off wages" upon marking attendance daily.
While he did not elaborate on the payment to employees, "lay-off wages" typically equal to 50 per cent of basic salary and dearness allowance.
The plant, the biggest in the country, started in 1989. It was the last operational plant of the Atlas Cycles with a monthly production of over two lakh bicycles.
Employees claimed the unit was shut without notice.
Asianet.in/News Desk: Asianet Online