Dr Reddys Unveils Vrs

Dr Reddy's Laboratories on Monday announced a voluntary retirement scheme(VRS) for all its permanent workmen above 40 years of age and who have completed10 years of service in the company.

Of the 800 workmen in 11 manufacturing units, around 200 fall under the VRS purview. The scheme, which opened on January 21, will close on January 31.

Though the 200 workmen are eligible for the VRS, the company is expecting only 100 to opt for the scheme, Soumen Chakrabarthy, senior vice-president (HRD) said. He said the surplus manpower in some units and the knowledge gap among some had prompted the company to implement a VRS.

Each workman opting for the scheme would get compensation up to a maximum of Rs 4 lakh, inclusive of other benefits such as fixed deposit receipts in the name of their children, gifts among others. Based on the company's estimation, the scheme is likely to cost the company around Rs 4 crore.

Meanwhile, the board is scheduled to meet on January 29 to consider the third quarter financial results.