AIA Engineering (NSE:AIAENG, BOM:532683) has closed the manufacturing operations at its unit in Nagpur, India, with effect from Tuesday, according to a same-day disclosure to the Indian bourses.

The company decided to boost its productivity, logistical efficiencies, improved supply chain coordination and to reduce its transit costs without any production or revenue loss.

The unit's closure is not expected to have any adverse effect on the production, business operations, and profitability of the company.

The unit had a turnover of 1.40 billion rupees in the financial year 2024-25, which the company said is "significantly low" in terms of its overall revenue of 42.9 billion rupees.

"Contribution of this unit was very negligible. There is no separate networth of this unit," it said.

AIA Engineering's shares were down over 1% in recent trade.