AIA Engineering announces that its subsidiary, Welcast Steels Limited (WSL), will permanently close its manufacturing facility in Bengaluru, effective October 15, 2025. The decision, approved by the Board of Directors, is due to the plant’s outdated technology and consistent decrease in capacity utilization, making operations economically unviable. There will be no adverse effect as WSL has sufficient surplus capacity to meet its requirements.
Factory Closure Details
The Board of Directors of Welcast Steels Limited (WSL), a subsidiary of AIA Engineering, has decided to permanently close its manufacturing facility located in Bengaluru, effective October 15, 2025. The plant is situated at Plot No. 15, Phase-1, Peenya Industrial Area, Bengaluru – 560 058.
Reasons for Closure
The decision to close the plant stems from the fact that it is a very old manufacturing plant that was established in 1972 with outdated technology, leading to very high production costs and unviable operations. It is not economically feasible to modernize the plant due to high investment requirements and space constraints. Consistent underutilization of capacity has further contributed to this decision.
Financial Impact
During the last financial year, the unit contributed a turnover of ₹84.50 Crores, representing 1.97% of the company’s total turnover. The net worth contribution was ₹39.72 Crores, which is 0.57% of the total net worth.
Timeline and Next Steps
The estimated date of closure is December 15, 2025. The company states that the closure will not have a negative effect as there is sufficient surplus capacity to meet requirements.
Source: BSE
