The Hindu Business Line : Britannia’s Chennai facility workers accept VRS offer

Bangalore/Chennai, April 9 Britannia Industries Ltd has said that most of the workers of its factory in Chennai have accepted its offer of voluntary retirement scheme.

In an e-mail communication, Britannia’s spokesperson told Business Line that the VRS was offered to all the workers of the factory. Consequently, the operations of the Chennai plant had been suspended from April 7, 2008. The spokesperson said that this was done because of “long-term manufacturing strategy.” The spokesperson did not give details of the number of workers who had accepted the VRS and the total amount paid for implementation of the scheme. The spokesperson, however, said that the VRS had not been extended to rest of its workers employed in other locations.

According to union representatives, 218 workers have opted for the voluntary retirement scheme. The compensation under the scheme ranges between Rs 9.5 lakh and Rs 10.5 lakh an employee.

According to company officials, the Padi facility accounted for about 2 per cent of the company’s business of about Rs 2,400 crore in 2007-08. The production is being moved to a more cost-effective location. Though production was stopped last week, other sections including sales, finance, administration, procurement and HR would operate from the Chennai facility.

Sources in the know say that the factory area is estimated at about eight acres and the company may consider selling or developing the property. Padi and the neighbouring Ambattur, on the western outskirts of Chennai, known for their manufacturing facilities, are now emerging as major destinations for IT companies. Land value in the area has escalated with one acre estimated at about Rs 10-12 crore.

Company officials, however, declined to comment about the plans for the property.

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