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Regular-article-logo Wednesday, 18 June 2025

RELIANCE TO CUT 3,000 JOBS IN TEXTILE REVAMP 

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FROM OUR CORRESPONDENT Published 02.04.01, 12:00 AM
Mumbai, April 2 :    Mumbai, April 2:  Reliance Industries (RIL) will focus on high value-added men's wear under the Vimal brand, phase out women's apparels and relocate yarn-processing facilities around Silvassa under a textile business restructuring plan. The rejig will lead to 3,000 layoffs, or 20 per cent of the company's 15,000 workers who will be offered a voluntary separation package. The revamp comes at a time when the company is planning massive investments in the infocom industry. It targets textiles, which was a once a revenue spinner but lost its pre-eminence to petrochemicals and other businesses. It now accounts for less than 1 per cent of the turnover, which is still a staggering Rs 1,000 crore in a Rs 20,000-crore group. Reliance said the focus will shift to its range of home textiles sold under the Harmony brand. While other products will be phased out, the polyester filament yarn processing business will be relocated around Silvassa from Naroda. Vimal's men's wear will include blended and worsted suiting made at Naroda while women's wear such as sarees and dress materials will be phased out. The penetration will be deepened by launching nationwide showrooms, besides the existing retail channels. Senior company officials said more flagship showrooms and retail outlets will come up across the country in a strategy which has been employed by other firms such as Indian Rayon and Raymond. The company says the revamp aims to strengthen the leadership of the Vimal and Harmony brands, increase market share, protect the interests of all employees of the textiles business and enhance shareholder value substantially. The VRS programme to be announced will provide the option of alternate employment to certain employees based on their skills. The package, expected to cost Rs 80 crore, will offer generous compensation for every year of continuous service, an ex-gratia for every year of remaining service up to the age of retirement and gratuity for the years spent at work. Commenting on the restructuring plan, K Narayan, president, textiles business, said, 'We are going ahead with the restructuring plan to sharpen our competitiveness, improve quality, boost margins on Vimal and Harmony products in the broader interests of our employees and shareholders.' The Reliance scrip opened at Rs 385, plunged to a low of Rs 375, touched the high of Rs 392.95 and closed at Rs 389.45 on the Bombay Stock Exchange.    
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