Rejuvenation of Amal Products Ltd.

Abstract

The case is of Amal Products Ltd. (APL), a company in southern Gujarat, manufacturing intermediate dyes and specialty chemicals, mainly for the textile market. The company went into losses in 1998 due to recession in the textile industry, fierce competition from Chinese manufacturers and from local manufacturers, who sold their products at much lower rates than APL. In response to the competition APL went in for cost reductions and, as one of the measures, offered voluntary retirement scheme (VRS) to its employees. Fifty-one of the 264 employees opted for VRS. The case explains the process of VRS adopted by APL and how it helped to save on costs. It also mentions the role of the various stakeholders in the implementation of VRS. The company reported profits in the year 2002.