Cummins India announces VRS scheme for employees
Cummins India said the VRS scheme has been announced to reduce headcount to manage the cost structure based on the business cyclesThe company did not disclose the financial impact of the VRS scheme
Cummins India Limited, a manufacturer of engines, generators and related products, has announced an voluntary retirement program or VRS for its "professional/exempt employees who have completed minimum 10 years of service and are above 45 years of age."
Cummins India, in a communication to exchanges said, this has been done with the "objective of reducing headcount to manage the cost structure based on the business cycles."
The company did not disclose the financial impact of the VRS scheme. "An update on the financial impact will be communicated upon conclusion of the program," the company said.
Cummins India Limited, which is headquartered in Pune since 1962, is the country's leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets.
Net sales of Cummins India for the quarter ended September 30, 2019, had declined 11% year-on-year to ₹1,285 crore.
Commenting on its Q2 earnings, which was announced on October 24, Ashwath Ram, MD of Cummins India Limited, had said: "The current sluggishness in the Indian economy arises from several factors including the prevailing liquidity situation, delays in awarding of infrastructure projects, banking sector including the shadow banks continuing to sort through their funding constraints. These factors have all resulted in reduction in demand across our key segments in the domestic business."
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