Business Daily from THE HINDU group of publications
Thursday, Jul 13, 2006
Business Daily from THE HINDU group of publications Thursday, Jul 13, 2006 |
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Corporate
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Manpower Industry & Economy - Textiles Century plans to downsize workforce in Mumbai mill Our Bureau
MR KUMAR MANGALAM BIRLA (left), Director, Century Textiles and Industries Ltd, and Mr E.B. Desai, Director, at the company's AGM in Mumbai on Wednesday. — Paul Noronha
Mumbai , July 12 Century Textiles and Industries Ltd is planning to downsize its workforce to around 2,000 employees from the current level of 7,000 through a voluntary retirement scheme. The company is also planning to reduce the number of looms in its textile facility in Mumbai, Mr Kumar Mangalam Birla, Director, told shareholders of the company at its annual general meeting. Mr Birla chaired the AGM in the absence of the company's Chairman, Mr B.K. Birla. "Running a mill in Mumbai is not viable because of octroi and other taxes and it has been impacting our competitiveness adversely," he said. Mr Birla said that the company plans to reduce the number of looms to 500 in an attempt to make it more viable. "In order to downsize, the workforce also needs to be reduced. We need the full cooperation of the Labour Union for this. We are persuading workers to retire under the VRS scheme. If this reduction doesn't happen, then the textile mill will become unviable," Mr Birla added. The company is evaluating a proposal to set up a textile mill in Bharuch, Gujarat. It is also exploring the possibility of setting up a 1.5 mt cement grinding facility in Murshidabad, West Bengal. On the recent controversy with the Bombay Dyeing Group over the mill land in Worli, Mr Birla reassured his shareholders that there was no controversy. "There is no controversy with the Wadias or the Bombay Dyeing Group. There is no jeopardy in our value as far as the land is concerned," he said. He clarified that out of the 30 acres of land, 10 acres are on a lease of 999 years. Shares of Century Textiles and Industries closed on the BSE at Rs 386.95, a decrease of 0.20 per cent.
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