Companies

200 Pipavav staff may lose jobs post R-Infra buy

Beena Parmar Mumbai | Updated on March 13, 2015 Published on March 13, 2015

Employees in non-production roles may be affected

As many as 200 employees working at Pipavav Defence and Offshore Engineering could lose their jobs following the company’s acquisition by Anil Ambani-controlled Reliance Infrastructure last month.

This will be part of a restructuring exercise that Reliance Infrastructure plans to undertake to tap synergies between the two companies.

Apart from its port office in Amreli in Gujarat, Pipavav Defence has a corporate office in Mumbai and regional offices in Delhi, Ahmedabad, Kolkata, Ludhiana and Jaipur.

The company has 700 direct employees under Pipavav Defence & Offshore Engineering and another 1,300 in subsidiary companies.

According to sources, the impact could be felt by employees mostly outside the Pipavav region in Gujarat. “There could be job cuts in non-production areas such as finance and accounts,” said an executive, adding the affected employees could be absorbed in other businesses under the Anil Ambani Group.

“Both Pipavav and Reliance have a presence in Mumbai and Gujarat so those who lose their jobs at Pipavav can easily be placed in other roles,” the executive added.

A spokesperson for Reliance declined to comment. The company’s acquisition of a controlling stake in Pipavav Defence and Offshore Engineering last month is one of the biggest in the defence sector.

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Published on March 13, 2015
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