Disclosure under Regulation 30 of SEBI (LODR) Regulation, 2015 Closure of Luggage Unit of the Company
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The Board of Alkosign Ltd has approved the closure of its Luggage Business Unit effective from the close of business hours on February 2, 2026. The luggage unit contributed 42.78% of the company's total consolidated turnover in FY ending March 2025, making this a significant restructuring move. The company cited intense market competition, sustained production losses, inability to compete with low-cost polypropylene luggage (as the unit only made polycarbonate luggage), OEM partners setting up their own facilities, and cancellation of the Baggit licence with unpaid dues disrupting cash flows. The decision was taken to cut losses and refocus on the company's core business.
This is a major restructuring — the company is shutting down a unit that generated nearly 43% of its revenue to stop ongoing losses. Near-term revenue will drop sharply, but the move should improve profitability if the core business is healthier. Shareholders should watch for the company's plans to redeploy resources and whether the remaining business can grow enough to offset this revenue gap.