In a saddening development, 84 Wipro workers had to be sent home after the demand for CFL products produced by them at the company's Mysuru unit became a victim of weak demand as consumers started opting for LED products.
"As required, we notified the government and relevant authorities of the decision to shut down the plant two months ago and have complied with all regulatory requirements," Wipro Consumer Care and Lighting (WCCLG) said in a statement, according to a PTI report.
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The Mysuru unit became commercially unviable due to the switch in the preference for LED products witnessed over the past two years, leading to a sharp drop in production, the agency said.
An update on WCCLG website says that around 8,300 employees work at WCCLG units and office worldwide, that include eight production units in India and seven overseas.
The company's overseas operations include Malaysia, Indonesia, Vietnam, China, Taiwan, Hong Kong and West Asia.
The entire business range of WCCLG includes soaps, toiletries, personal care products, baby care products, wellness products, electrical wire devices, domestic and commercial lighting and modular office furniture.
Wipro demerged its businesses in November 2012, bringing WCCLG, Wipro Infrastructure Engineering (Hydraulics & Water businesses), and Medical Diagnostic Product & Services into a separate company called Wipro Enterprises Limited, which is not listed on the stock exchanges.
Wipro Ltd., the IT business, remains a listed entity.
"The demerger is anticipated to provide fresh impetus for both Wipro Limited and Wipro Enterprises Limited to pursue their individual growth strategies. The demerger is also expected to improve the competitiveness in their respective markets," the company had said in a statement then.
