Escorts implements VRS; 350 employees leave company

Farm equipment major Escorts Ltd today announced implementation of a voluntary retirement scheme (VRS) as part of its organisational restructuring under which 350 employees have exited the company.

"With an operational focus on improving business performance, Escorts Ltd has successfully implemented group-wide future-oriented VRS, aimed particularly at restructuring Escorts Auto Products," the company said in a statement.

The exercise will cost around Rs 30 crore and will have a payback of two years. The one time impact will be reflected in the company's Q2 results. The exercise was closed within 30 days, it added.

"This largest-ever VRS at Escorts was availed by 350 employees and will enable greater efficiencies and productivity due to rationalisation of deployment," the company said.

Commenting on the development, Escorts Executive Vice President (HR & ER) Ishan Mehta said: "Our VRS offer was part of an overall group-wide strategic initiative to make Escorts leaner and smarter organisation. Through this, we have sought to become even more focused on productivity and improve our organisational efficiencies."

Escorts Auto Products CEO Dipankar Ghosh said the firm embarked on programmes that focused on 'lean' management and consolidation of manufacturing facilities to create more profitable production methods.

The company has also engaged with chosen prospective partners for technology infusion to tap into larger opportunities available within the auto sector, he added.

"I am sure these initiatives will enable EAP to target higher market share by offering its high-end products to domestic as well as international markets," Ghosh said.

Escorts Auto Products is among the leading manufacturers of auto suspension products, including shock absorbers, struts and telescopic front forks.

Shares of Escorts Ltd were trading 4.66 per cent up at Rs 159.40 per scrip during mid-day trade on the BSE.