Dhara Oil offers golden handshake

Vadodara-based Dhara Vegetable Oil & Foods Company (DOFCO), a subsidiary of the National Dairy Development Board (NDDB), has announced a voluntary retirement scheme (VRS) for its employees.

DOFCO, that reported a turnover of Rs 283 crore in last fiscal, is aiming at enhancing productivity by reducing manpower.

DOFCO markets the Dhara brand of edible oil.

With the VRS announcement for its employees, speculation of DOFCO's merger with any other subsidiary of NDDB has become rife in the co-operative sector. NDDB has four subsidiaries, including DOFCO.

However, DOFCO managing director Ashok Srivastava ruled out any possibilities of the company's merger with any other NDDB subsidiary.

"At present we have no plan to merge DOFCO with any entity. We are going through a restructuring plan and VRS is a part of it. We are planning to increase the share of exports and bulk trading that is too low currently. Simultaneously, we are commissioning new packaging stations and relocating some the existing packaging stations," Srivastava said.

DOFCO was set up in late December 2000 as a wholly owned subsidiary of NDDB to undertake activities related to edible oils and oilseeds.

The company had taken over the sales and distribution of Dhara from the Gujarat Co-operative Milk Marketing Federation (GCMMF) that sells Amul and Sagar brand of milk products in May 2003.

It is believed that DOFCO has not delivered the desired results in terms of sales after it took over the sale of Dhara from GCMMF.

The Dhara brand had reported annual sales of around Rs 300 crore.

At present DOFCO has about 150 employees posted at different sites across the nation. The scheme has been offered to employees aged over 40.

The employees opting for the scheme would get three months' salary for the remaining years of service.

"The VRS scheme will help those who are not willing to take up an assignment on new location. Because we will have to transfer a number of employees to take charge at upcoming facilities," said Srivastava.