Alstom Plans Vrs To Pare Workforce

Alstom Ltd (formerly GEC Alsthom India Ltd) is currently mooting with the idea of a fresh voluntary retirement scheme (VRS) to trim its excess workforce and reduce employee costs which is very high. Over the past five years, the company has brought down its workforce from around 9,000 to nearly 6,000 at present.

"We are currently thinking on the lines of a fresh VRS package, the details of which will be worked over the next few months after consultation with other concerned parties," said K K Moradian, managing director, Alstom Ltd.

Alstom is also seeking joint venture partners for its meter division, an area in which the parent company has no presence. "We are looking for technical partners to build and expand our technical base in this division. This is one area where there are no major international players," said S K Poddar, non-executive chairman, at the 42nd annual general meeting.

 

The company is also looking for JV partners for its motor division, Moradian said.

"We have a wide product range and have identified some of the products which have a long term future which will form our core areas. However, there is no point in retaining those areas which are not viable and where we fail to be the market leader," Poddar said.

The company will focus on the new rehab plan for the next five years to which final touches are being given. The company has embarked on a 'Stretch 30 and Customer Care' programme. Stretch 30 entails reduction in costs, cycle time, inventory etc., by 30 per cent over three years. Special task forces have been set up at all the locations for this objective.

Alstom has decided to implement enterprise resource planning (ERP) software. The implementation work is likely to be taken up in two or three months time.

The company yesterday got the shareholders approval to change the name to Alstom Ltd as per the parent company's global policy. "Only holding companies may have country-specific names included," Moradian said.