Ricoh India’s headquarters
The OEM has announced that its former Indian subsidiary is no longer part of the Ricoh Group.
The news follows the decision by the Ricoh India Board to initiative the corporate insolvency resolution process, which will see it proceed with an internal restructuring, and separate itself from its parent company.
A statement from Ricoh declared that “Ricoh India has undertaken significant management reforms, cost reductions and other measures for the purpose of business recovery,” although “its business performance has not improved.”
The statement also cites further reasoning for Ricoh India’s change of direction, attesting that “Ricoh India’s relationship with its major vendor has deteriorated” and that “contracts by the vendor have not been fulfilled,” as well as the fact that “receivables have not been collected by business partners.”
Due to this, “Ricoh India has now reached a position where it is unable to meet its liabilities, it decided to file the petition in the best interests of its customers, employees, minority shareholders, creditors and all other stakeholders.”
Ricoh also states that it offered “various forms of support to rebuild Ricoh India up until October 2017,” when it reevaluated and decided “not to provide any additional financial support going forward under the circumstances at that time, in order to minimize the consolidated losses of the Ricoh Group.”
Looking ahead, the OEM has pledged to “closely monitor the progress of procedures”, in its capacity as Ricoh India’s largest supplier, creditor, and shareholder, and to “make every effort to continue to provide services to our customers in India and maintain the quality of that service going forward.”
It has added that it expects no change in its previously-announced financial forecast for the 2018-19 fiscal year.
