VIP introduces VRS at its Nashik unit

Luggage manufacturer, VIP Industries, has introduced the Early Voluntary Retirement (EVR) scheme for its permanent workmen at its Nashik facility, which employs 930 persons.

Accordingly, around 200 workers have reportedly applied for the VRS.

The company had recently announced its plan of expanding the capacity of its Nashik facility at an investment of Rs 3 crore by the end of the current calendar year (December 2006).

The company's decision to introduce the EVR scheme is really surprising after announcing expansion plans and the company has also not given any reason in this regard.

About three years ago, the company had introduced a similar scheme citing recession and 135 workers opted for EVRS at that time.

As per the scheme, the permanent workmen in the 40-49 age group, will be paid EVRS compensation amount of about Rs 5.5 lakh, while workmen in the age group of 50-52 will get Rs 4.25 lakh.

The workmen above 52 years will be paid the EVRS compensation amount of Rs 8,854 per month for the remaining service, according to sources.

VIP Industries has five manufacturing facilities - Nashik, Sinnar, Jalgaon, Nagpur and Haridwar (Uttaranchal). Currently, the manufacturing capacity of the Nashik facility is 3,500 lakh pieces of moulded luggage per month and the company is planning to increase its capacity by 15,000 units per month by December 2006.