Calcutta, July 8: Jenson & Nicholson will cut up to 225 jobs at its plant in Naihati, as the beleaguered paints company embarks on a radical restructuring of its operations. The exercise could even lead to a change in the company’s management.
Jenson has appointed Judis Moneta Financial Services — a Singapore-based investment bank — to restructure the company’s debts, chalk out strategies to cut costs and scout for a strategic investor.
Jenson employs a little over 350 people at its Naihati plant, which means two in every three workers of the factory are going to lose their job.
A senior official of the company said, a severance package for the workers of the Naihati plant was under discussion.
Close to 50 employees at the company’s erstwhile head office in Calcutta were recently asked to leave without any prior notice.
Besides job cuts, a change in management is also likely at Jenson. Karan Judge, managing director of Judis Moneta, said: “The promoters — the Sinha family — have indicated to us that they are not going to invest in this company. So we’ll have to find a strategic investor.”
Though he refused to comment on whether the Sinhas were willing to cede management control of the company, he did not rule it out.
Jenson is indebted to financial institutions and banks to the tune of Rs 150 crore. It had drawn up a plan to restructure and repay its borrowings, but the lenders did not agree to its proposal.