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July 3, 2001
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Money > Business Headlines > Report July 3, 2001 |
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Sterlite plans VRS for Balco executivesRumi Dutta The Anil Agarwal-controlled Sterlite Industries is planning to trim the flab in its recent acquisition, Bharat Aluminium Company. The company is planning to introduce a voluntary retirement scheme for the executives of Balco. This is in line with Sterlite's plans to improve profitability at the aluminium major. A senior group executive said, "As per the divestment clause, the new management cannot retrench the workers affiliated to the recognised Unions. The executive rank which does not fall under this category would be soon offered a VRS." He, however, refused to divulge further on the issue. Despite repeated attempts, Sterlite officials were not available for comment. Tarun Jain, director (finance) of Sterlite Industries, failed to respond to calls. Meanwhile, Sterlite is planning a restructuring exercise specially for Balco. This will include reduction in operational costs and efficient utilisation of resources. The company is also planning to focus on improving inventory and working capital management. Sterlite Industries is at present conducting a feasibility study on the merits of hiving off its aluminium business into a separate company, officials said. On the other hand, the company has mandated PricewaterhouseCoopers to handle the post divestment processes. This involves ensuring that the post-divestment issues are carried out as per the conditions laid out in the memorandum of understanding and the inking of further agreements in this regard. According to analysts, Sterlite is leaving no stone unturned to make its investments profitable at the earliest. The company plans to infuse around Rs 20 billion in Balco to rejuvenate it. Sterlite is expected to spend Rs 3.50 billion to restart production at the Balco facility at Korba in Chhattisgarh. This is expected to lead to a fall in turnover as it would take about three more months to get the plant operating at full capacity. The smelter at Balco began facing technical problems earlier this year due to a strike by Balco workers who were opposed to the divestment process. Powered by YOU MAY ALSO WANT TO READ:
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