The serious problems that have affected the Kanpur tanning district for months are now heavily reflected on companies’ financial sheets. As reported by business-standard.com, Super Tannery Limited, a historic tannery of Uttar Pradesh, closed the first quarter of the year with sales down by 40,63% compared to the same period twelve months ago: from 593,4 million of rupees to only a little over 352,3 million, meaning from around 7,6 million to around 4,5 million euros. Net profit also fell sharply: from 10,3 million rupees recorded on March 31, 2018 to the current 2,1 million rupees (from around 133,000 euros to around 27,000). A collapse close to 80% that cannot fail to raise a certain alarm now that the effects of the stop imposed on tanneries by the government can be read in the financial sheets. For over 6 months the activity of the district has been suspended to clean up the river Gange and all its tributaries in view of Kumbh Mela, causing a protracted stalemate even after the conclusion of the sacred ceremony, as the prohibition of work has persisted. Now, after the elections that confirmed the outgoing government in Uttar Pradesh, many entrepreneurs in the sector are convinced that their companies will never reopen. Someone has already moved to other Indian states, someone else is even considering leaving the country, but those who remain meanwhile are brought to their knees.
The impact of Kumbh Mela on Super Tannery financial sheets: revenues down by 40%
