Business Report writes that Ellies, which makes and installs DStv satellite dishes, has decided to liquidate its embattled manufacturing segment, Ellies Industries, with 148 jobs to be lost.
Ellies said the major lines produced by Industries, and which are largely sold to Electronics, consisted of products related to satellite connectivity and associated electrical products, which Electronics was now in a position to procure externally at a lower cost than if manufactured by Industries. Shaun Prithivirajh, CE of Ellies, commented: It had been a very painful decision which affected 148 jobs. However, they could no longer carry the loss making unit. The company will be in a stronger position.” Prithivirajh indicated that the manufacturing unit had battled on despite being loss-making while waiting for the government’s switch migration from analogue to digital terrestrial television to materialise, which would have made the difference. However, that did not happen. During the course of 2020, Ellies Holdings engaged the services of an external consultant to assess the operations of Industries with the objective of identifying both inefficiencies and efficiencies in order to assist in improving Industries’ viability. However, this exercise did not find sufficient positives to persuade it that its continued financial support of Industries was justifiable or in the best interests of the company and its shareholders.
- Read the full original of the report in the above regard by Sandile Mchunu & Philippa Larkin at Business Report
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