Sri Chakra Cement Orders Work Layoffs at Andhra Pradesh Plant

HYDERABAD — Cement manufacturer Sri Chakra Cement Limited announced on July 29, 2026, that it has decided to lay off workers at its primary manufacturing unit located in Sri Narasimhapuri, Karampudi, Palnadu (formerly Guntur) district, Andhra Pradesh. The operational halt and employee lay off will take effect from August 1, 2026, and remain in place until further notice.

The Hyderabad-headquartered building materials firm stated that the management took the decision following a comprehensive internal review of current business operations.

Operational Halt Details and Legal Framework

The administrative decision was formally communicated to the financial markets through a regulatory disclosure signed by Managing Director Vijay Kumar Kapilavai.

According to the official intimation, all eligible workmen affected by the plant suspension will receive lay off compensation and statutory dues in accordance with applicable labor law guidelines.

Strategic Context and Regional Industrial Setting

Sri Chakra Cement Limited manufactures portland cement and related binding materials for regional construction projects across Andhra Pradesh and Telangana. The Karampudi plant serves as a core production center for the company's regional distribution network.

The temporary suspension comes amid shifting operational dynamics, raw material input cost adjustments, and demand cycles across southern India's building materials and infrastructure sector.

Impact on Workers, Businesses, and Shareholders

The operational suspension at the Karampudi facility creates direct structural and financial implications across local stakeholder groups:

• Factory Workers and Families: Affected workmen will transition to statutory lay off compensation as per labor regulation guidelines until manufacturing operations resume.

• Regional Supply Chains: Local transport providers, raw material vendors, and regional dealers will experience temporary supply disruptions originating from the Karampudi plant.

• Shareholders and Market Investors: Capital market participants monitoring Sri Chakra Cement Limited will evaluate the operational pause against the company's broader cost structures and future production targets.

Official Sources Section

According to official regulatory filings submitted to stock exchanges, Sri Chakra Cement Limited formally reported the plant action pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Full disclosures and corporate notices can be reviewed on the official portal of BSE Limited.

Quote Section

"Pursuant to the requirement of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the management has reviewed the business operations of the Company," stated Vijay Kumar Kapilavai, Managing Director of Sri Chakra Cement Limited. "Accordingly the Company has regretfully decided to layoff the workers from 1st August, 2026 until further notice at the Company's unit situated at Sri Narasimhapuri, Karampudi, Andhra Pradesh. All the eligible workmen will be paid lay off compensation and other statutory dues as per the existing legal provisions."

Why It Matters

Temporarily halting production at a core cement manufacturing plant allows corporate management to manage inventory levels and contain operational overhead during changing market conditions. The decision ensures that labor liabilities are addressed through formal statutory channels while operational reviews continue.

Key Facts at a Glance

• Facilitiy Location: Sri Chakra Cement Limited manufacturing unit in Sri Narasimhapuri, Karampudi, Andhra Pradesh.

• Effective Action Date: Work layoffs begin August 1, 2026, and extend until further notice.

• Workman Protection: Eligible workers will receive lay off compensation and statutory dues under legal provisions.

• Regulatory Compliance: Filed under Regulation 30 of SEBI LODR Regulations, 2015.

Frequently Asked Questions (FAQ)

When will the lay off at Sri Chakra Cement's plant begin?

The lay off of workmen at the Sri Narasimhapuri, Karampudi unit takes effect from August 1, 2026.

Where is the affected Sri Chakra Cement unit located?

The affected facility is situated at Sri Narasimhapuri, Karampudi, in Andhra Pradesh.

Will affected workers receive compensation during the plant layoff?