The fresh indication to switch over to a new business came from the company - a subsidiary of ITC Ltd, India -- after the management finalized its divestment plan on garment factory.[break]
“We have decided to sell the equipments and other accessories of garment manufacturing unit,” said a company source, adding that the company was instead planning to set up a new factory in the same place.
Ravi KC, corporate vice president of Surya Nepal, confirmed the decision. However, he added that the plan on the new venture is still under discussion and yet to be finalized.
“The management´s plan is to switch over to a new venture. I cannot disclose now what it would be,” KC told Republica.
The company said the unruly action of some two dozen trade union leaders had led a larger number of workers to lose their jobs. “This was totally unwanted. Hence, our effort will be to give job opportunities to them in the new industry, if their skills matched with the nature of the production,” said KC.
As for the relay hunger strike launched by the workers to resume the garment factory, the company has clarified it could fulfill their demand as the company has lost all its clients and has no orders currently.
Officials said the company was not in a mood to jump into full-fledged operation of the new industry given the frequent strikes by union leaders. “Nonetheless, the new venture will be big enough to absorb well disciplined workers of the garment factory and also other unemployed youths,” said the source.
KC refused to comment on it. He, however, said that the closure of garment factory did not mean that the company would not explore new opportunities. “We are here to stay and grow. The very fact that we are planning to come up with a new industry proves that Surya Nepal will continue seeking expansion of businesses as long as the investment climate remains favorable,” he said.
The company has also started negotiating with the workers, who had been staging relay hunger strike since Tuesday, to withdraw their protests and pave the way for opening of the new industry.
“Once the workers cooperate and all the liabilities are settled, we will formally disclose about our next venture, the size of the investment and employment opportunities,” said KC.
Despite the new business plan, Surya Nepal has said its implementation will largely depend on how the trade unions and the government will respond to it. The company had decided to shut down the garment factory on August 17 this year referring to labor unrest and lack of orders.
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