The board of directors of Bata India Limited approved the introduction of a voluntary retirement scheme (VRS) for eligible workers at its Bata Shatak manufacturing unit in Hosur, Tamil Nadu on Thursday, January 8. According to the company's regulatory filing, the scheme will be offered to all eligible workers at the unit as part of ongoing operational restructuring. The move is expected to be mutually beneficial for both employees and the organisation. Bata India has been consolidating its manufacturing footprint over the years amid cost pressures and changing market dynamics, as reported by ThePrint.
The proposed VRS at Hosur continues Bata India's strategy of rationalising its factory operations. The company had earlier implemented VRS at multiple units, leading to closures. Its Faridabad unit in Haryana was shut in 2016 after all workmen opted for VRS, while a unit in Karnataka was closed following a VRS implemented in the past. Despite these closures, the company retains manufacturing facilities at select locations including Batanagar in West Bengal, Bataganj in Bihar and Peenya near Bengaluru, according to ThePrint.
The company has not shared further details on implementation status and financial impact of the VRS yet. An assessment will be made over time and disclosed subsequently in line with its policy for determination of materiality of events and information, Bata stated. The number of employees opting for the retirement scheme will also be shared later, as reported by CNBCTV18.com.
Shares of Bata India closed at ₹925.30 apiece, which is 1.14% lower than the day's opening on the NSE, according to market data reported by CNBCTV18.com.
In Q2 of the current financial year, Bata reported a 73.26% year-on-year decline in consolidated net profit to ₹13.9 crore, hurt by lower revenue and rising expenses amid the transition to the new GST 2.0 regime. The company had posted a profit of ₹51.98 crore in the same period last year. Consolidated revenue from operations fell 4.3% to ₹801.33 crore for the quarter ended September 30, 2025, as reported by CNBCTV18.com.
