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Iconic Atlas Cycles shuts down

Atlas Cycles has shut its last manufacturing unit, which is located in Sahibabad, near New Delhi due to lack of funds. The company claims that this is a temporary shutdown and there are plans to resume production once it is able to raise Rs. 50 crore by selling surplus land.

Atlas Cycles shut down its factory on June 3, 2020. The company has also laid off 431 employees, who are still said to be on the payroll and are being paid 50% of their basic salary and dearness allowance. The employees have been asked to mark attendance daily, except on holidays.

The Atlas Cycles factory near Delhi is said to be the biggest bicycle manufacturing unit in the country. It produces over 2 lakh bicycles per month. The factory was opened in 1989.

The company is reported to have started making losses in 2014, which resulted in the closure of the Malanpur plant. The Sonipat plant was closed in February 2018.

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