Non-Surgical Closure of Pepsico Plant: A Case Study

The emerging business scenario is largely driven by market forces. The businesses, due to market compulsions, have resorted to very painful and difficult options like relocation and or closure of plants. The employees have to undergo a number of hardships as a result of closure and or relocation of plants. Can one maintain a balance between business compulsions and employees' interests? The case study of Pepsico's Naroda plant is one example where a balance has been maintained between the two extremes. A number of meaningful initiatives have been taken by management to minimize the hardships of workers given VRS at this plant. The case discusses the process and dynamics of closure of the plant through VRS in about three weeks time.