The Hindu Business Line : Lakshmi Mills announces VRS at Coimbatore unit

The company has downsized its workforce at this unit from 1,300 some years ago to less than 300 at present. Company sources said the management has been trimming workforce by announcing a package every 15-18 months for sometime now. “Even last year about 110 workers opted for voluntary retirement,” the source said.

The recent announcement, however, has given the workers an impression that the management is not too keen about continuing to operate the plant here.

The mill, established in 1910, has three units – Pappanaickenpalayam in Coimbatore, Palladam near here and at Kovilpatti in Tuticorin district with facilities for manufacture of yarn and fabric.

The total spindleage is over 1.46 lakh, apart from 117 looms and 672 rotors. The Coimbatore unit with a capacity of 31,968 spindles is engaged in the manufacture of polyester cotton blended yarn.

The mill, which is marching towards its centenary, is said to be the oldest in this part of the country. It has been facing difficult times in the last couple of years. The company incurred a net loss of Rs 10.20 crore during the 2007-08 fiscal. It made a Rs 6.65-crore profit the earlier year.

Talk of unit closure

The source, while attributing the downsizing to modernisation, maintained that the facilities at the Palladam and Kovilpatti plants were being modernised, but not the Coimbatore plant.

A section of the workforce said the management had informed them about their inability to run the unit and requested them to either transfer to Palladam/Kovilpatti units or retire voluntarily.

None of the top management were available for comment.

According to sources, 35 of the 280 have resigned, while another 40 have opted to move to its other units.

The unit is operating at only 40 per cent of its installed capacity at present. “The yarn market is bad and this coupled with the energy crisis is making production operations unviable,” a company source said.

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