Sanjiv Keshava, MD, Surya Nepal (a subsidiary of ITC Ltd, India)
Both the government and workers of the garment factory have appealed to Surya Nepal to review its decision. What are the chances of the company reviewing its decision?
There is absolutely no chance of reviewing the decision. The factory was manufacturing garments for exports. Now if we have no orders and previous buyers have categorically refused to provide orders for immediate future, what is the point of opening it? For what purpose are we to open it?
If the factory is gone permanently, how are you divesting your investment?
We have not decided anything concrete to this connection so far. We will decide on what to do with the machines, land and buildings and other property soon. We will unveil our divestment plan as soon as we finalize it.
What will be the fate of showrooms and brands established by Surya Nepal?
Those will remain. We are not moving out of the garment business. It is just that we are shutting down our manufacturing units that catered to our exports needs. John Players are Springwood are established brands, and they have substantial domestic demand as well. So our plan now is to outsource the production to credible local manufacturers and sell them through our local showrooms.
What is ITC´s perception to the saga that led to shutdown of the garment unit? Will the decision impact other businesses and expansion drive of Surya Nepal?
We treat each subsidiary unit as an independent business entity and unfavorable circumstances in one does not necessarily mean other ventures are unfavorable too. So, the events that unfolded in the garment manufacturing business will have no impact on other businesses. We will continue with all other businesses and will also move on with Surya Tobacco´s expansion plan.