The shifting preference of consumers and growing popularity of LED bulbs led to mounting losses forcing the Wipro Consumer Care and Lighting unit to close down in Mysuru.
A statement from the company said almost all players in the CFL business were registering negative growth and the entire industry was estimated to be on a downward spiral, and are expected to close the year down by 50%.
The company claimed that its Mysuru factory had been continuously recording losses owing to a decline in volumes of all products manufactured at the Mysuru unit and losses had increased in the last five years. “It is certain that the CFL is unviable and there is no hope of its revival and the Mysuru establishment, with its complete dependence on its investment in CFL, has no opportunity of revival,” the statement read.
But the employees are seeking an answer on why the management failed to foresee the consumers’ shifting preference and induct new technology. The statement said it had taken specific steps to adopt to manufacturing activities to suit the changing requirement of the market but also said specific efforts did not result in any desired results and the losses were mounting.
All workmen will be paid a month’s salary in lieu of the notice and the compensation as per the appropriate section of the Industrial Disputes Act, 1947. The notice of closure said an individual letter of termination to each of the workmen will be issued separately along with a cheque for payment of notice pay and compensation.
