Tata Tea will be introducing a voluntary retirement scheme in its plantations in Munnar. This would be the second round of VRS being introduced by the company, but the first in its plantations.
The company has 16,000 employees in Munnar and Tata Tea plans to target the workers in the first phase, followed by the management staff. The notice to the stock exchanges, mentions that the company is introducing a VRS in the company, where necessary.
Percy Siganporia, managing director Tata Tea said, the VRS would be for select sections of employees in select gardens of south India. The company would focus on high-range estates of south India. The move was primarily aimed at rightsizing the workforce and improving efficiency of the operations of Tata Tea.
The company had earlier indicated that it was reworking its plantation strategy and evaluating all options. However, Siganporia said, no firm conclusions had been made by the company on the issue.
It maybe mentioned, in 2002, the company introduced its first round of VRS, when salary and wages accounted for 60 per cent of the cost of production. The company trimmed management staff by 30 per cent and supervisory by 15 per cent.
The scrip today dipped by 2.56 per cent and closed at Rs 417 on the Bombay Stock Exchange and by 2.27 per cent and closed at Rs 417.45 on the National Stock Exchange. Volumes on BSE and NSE were at 21,352 and 83,445 respectively.
