New Delhi, April 19 :
New Delhi, April 19:
In a case of reverse investment, Duracell Belgium which is acquiring all equipment at Gillette India's alkaline battery plant at Manesar near Delhi, has decided not to reopen the factory, and will, instead, cart the equipment valued at $ 6.5 million to its mother plant at Belgium.
Normally, multinational companies are known to transport old machinery from European or US locales to new Third World plant sites to take advantage of the cheaper labour there.
But in this case, officials told The Telegraph that Gillette has already given a voluntary retirement package to all its 175 employees, halting its production of alkaline batteries in this country. The company will now import batteries into the country for sale here. For Gillette, India will remain just a marketing hub now as far as alkaline batteries are concerned.
The company will now source all alkaline batteries from other Duracell facilities across the globe. However the company's plant at Mysore will continue to manufactures zinc batteries under the brand name Geep.
The proprietary Gillette plant equipment will be physically transported to Belgium, said company spokesperson Vijay Mathur, Gillette's director of legal and corporate Affairs for India and South Asia. The company is charting out alternate plans for the use of the vacant real estate at the plant.
The company incurred a one-time cost of Rs 60.64 crore on the closure of the Duracell plant, Mathur said. The Manesar plant, which made alkaline batteries (AA), used to export 85 per cent of its production. The company claimed that in the changed global market conditions, exports from the Manesar plant were no longer cost-effective.