- News>
- Companies & Commodities
SAIL to reduce manpower by 10000; target Rs 20,000 cr turnover
New Delhi, Jun 02 : Having turned around in the lastquarter of 2002-03 after a gap of five years, Steel Authorityof India Ltd has fixed a turnover target of Rs 20,000 crorefor turning profitable in the current financial year and woulddownsize its manpower by 10,000 as part of cost-cuttingefforts.
New Delhi, Jun 02 : Having turned around in the last
quarter of 2002-03 after a gap of five years, Steel Authority
of India Ltd has fixed a turnover target of Rs 20,000 crore
for turning profitable in the current financial year and would
downsize its manpower by 10,000 as part of cost-cutting
efforts.
"We are committed to turn the current fiscal into a
profitable one even if the existing conditions with regard to
demand and prices do not improve, though they should not
deteriorate further," V.S. Jain, jubiliant Chairman of SAIL
told reporters here.
Jain`s confidence stems from the fact that despite marginal fall in demand as well as prices of steel, SAIL managed to export two lakh tonnes of steel, which is 20 per cent of its export target of one million tonnes in 2003-04.
Commenting on the marginal dip in prices in the last two months, Jain said "This will not have any major impact on us. Prices have come down mainly due to speculative demand in the month of March." On the reduction of manpower by 10,000 in the current financial year, Jain said the company would come out with a Voluntary Retirement Scheme (VRS) soon. Of the 10,000 employees, about 6,500 employees would be separated through VRS while the rest through natural retirement.
The manpower rationalisation would cost the company about Rs 500 crore, Jain said adding that besides this the company is planning to invest over Rs 3,000 crore in the next four years for technological up-gradation of plant and machinery on a continuous basis.
Jain`s confidence stems from the fact that despite marginal fall in demand as well as prices of steel, SAIL managed to export two lakh tonnes of steel, which is 20 per cent of its export target of one million tonnes in 2003-04.
Commenting on the marginal dip in prices in the last two months, Jain said "This will not have any major impact on us. Prices have come down mainly due to speculative demand in the month of March." On the reduction of manpower by 10,000 in the current financial year, Jain said the company would come out with a Voluntary Retirement Scheme (VRS) soon. Of the 10,000 employees, about 6,500 employees would be separated through VRS while the rest through natural retirement.
The manpower rationalisation would cost the company about Rs 500 crore, Jain said adding that besides this the company is planning to invest over Rs 3,000 crore in the next four years for technological up-gradation of plant and machinery on a continuous basis.