Indo Tech Transformers Braces for Labour Unrest, Moves Court to Protect Kancheepuram Plant

Indo Tech Transformers Ltd has initiated legal proceedings to preemptively safeguard its Kancheepuram manufacturing facility, anticipating potential disruptions from trade union activities. The company filed an injunction suit on July 2, 2025, seeking judicial protection of its assets and operations amid escalating tensions with worker unions.

 

This development follows a history of labour disputes at the Kancheepuram plant, including a temporary production halt in April 2024 due to disagreements over Variable Dearness Allowance (VDA) calculations. Although operations resumed in May after conciliation efforts, the company now fears a resurgence of unrest.

 

Key Highlights:

 

Legal Action: Indo Tech has filed an injunction suit to prevent possible obstruction or damage by union-led protests.

Factory at Risk: The Kancheepuram unit, a key transformer manufacturing hub, is central to Indo Tech’s domestic and export operations.

Labour History: Previous disputes over wage components led to a production shutdown and conciliation hearings before the Assistant Commissioner of Labour.

Business Continuity: The company asserts that all other operations remain unaffected and that the legal step is precautionary.

Market Impact: Shares of Indo Tech Transformers remained stable, with investors awaiting clarity on the legal outcome.

 

The company emphasized its commitment to dialogue but reiterated the need to protect its infrastructure and delivery timelines. The court’s response to the injunction plea will likely shape the next phase of industrial relations at the site.

 

Sources: MarketScreener, Indo Tech Transformers official site, Value Research Online