Hero MotoCorp launches VRS for entire staff to make firm 'future-ready'

Auto major Hero MotoCorp on Wednesday announced a voluntary retirement scheme (VRS) for its staff. The VRS has been designed in line with the vision to make the organisation agile and 'future-ready', consolidating roles and reducing layers to increase empowerment and agility, the company said. "We expect this to improve efficiency within the Company through a lean and more productive organization."

Applicable to all staff members, the VRS offers a package that includes – among other benefits - a one-time lump-sum amount, variable pay, gifts, medical coverage, retention of the company car, relocation assistance, and career support.

The company said the general consumer sentiment is improving, as reflected in the sales performance in March. "The constructive policies of the government and the social sector reforms have given a further boost to the demand scenario and the two-wheeler industry expects these factors to contribute towards a double-digit growth in this financial year," it said.

In March, Hero MotoCorp sold 519,342 units, recording a double-digit growth of 15 per cent in the same month last year when it had sold 450,154 two-wheelers. In the domestic market, the company sold 5,02,730 units, a growth of 21 percent. However, its exports fell 51.69 percent to 16,612 units.

Earlier this month, the company revised ex-showroom prices of its select motorcycles and scooters. The price revision, the company said, had been necessitated mainly due to cost increases on account of the OBD-2 transition. OBD-2 transition refers to the mandatory transition of vehicles from On-Board Diagnostics (OBD)-1 to OBD-2 systems.

Announcing the decision last month, the company said the price revision would be around 2 per cent and "the exact quantum of increase will vary by specific models and markets".

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