Modi Naturals Ltd Approves Closure of Unit in Pilibhit; Disposal of Plant and Machinery Initiated
Modi Naturals Ltd has approved the closure of its manufacturing unit located at Village - Lalori Khera, Bareilly Road, Pilibhit Tahsil, Pilibhit, Uttar Pradesh - 262001. The decision was taken due to the non-viability of manufacturing operations, aligning with the Company's strategy to consolidate its bulk oil business.In parallel with the unit closure, the Company has also approved the sale and disposal of the plant and machinery installed at the aforesaid Pilibhit unit. It was clarified that the land and building belonging to the unit are not part of the proposed transaction and will be retained by Modi Naturals Ltd.
The closure of the Pilibhit unit is not expected to cause any material adverse impact on the overall operations of the Company. The firm operates another solvent extraction plant nearby, which has sufficient spare capacity. Management noted that the processing volume impacted by the closure is expected to be substantially absorbed by this other operating facility.
The proposed sale/disposal of the plant and machinery does not qualify as the sale of an undertaking or substantially the whole of an undertaking of the Company, as per the Companies Act, 2013.
Details of Sale/Disposal
The sale transaction involves the disposal of plant and machinery. The sale agreement was entered into on April 21, 2026, and the expected completion of the sale/disposal is April 23, 2026. The consideration agreed for this disposal is Rs. 63 lakhs.The details of the unit's contribution and the transaction terms are summarized below:
| Particulars | Information Provided | Value / Detail |
|---|---|---|
| Standalone Contribution (Turnover) | % of Standalone Turnover | 4% (Rs 16 crores) |
| Standalone Contribution (Net Worth) | % of Standalone Net Worth | 0.81% (Rs 90 Lakhs) |
| Date of Agreement Entry | N/A | April 21, 2026 |
| Expected Disposal Date | N/A | April 23, 2026 |
| Agreed Consideration | N/A | Rs. 63 lakhs |
| Buyer Relationship | N/A | Does not belong to the promoter/promoter group/group companies |
| Related Party Status | N/A | Does not fall within related party transaction |
MODINATUR Stock Price Movement
As of 3:14 PM, Modi Naturals Limited slips by 0.33% in live trading, currently at ₹359.8. The stock is seeing trading activity on 6,334 shares, positioning the price within today’s range of ₹350.00 to ₹366.75.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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