Philips India to ‘switch off’ Mohali unit, 700 will go jobless

Vijay C Roy

Tribune News Service

Chandigarh, November 6

After almost 34 years of establishment, Philips Lighting India unit at Mohali, engaged in the manufacturing of compact fluorescent lamps (CFLs), will stop its operations in the second half of 2018. The company cited sharp decline in demand for conventional CFL-I products in the domestic market for the closure of the plant.

It will affect over 700 employees, including 69 full time and approximately 650 contingent workers. The company has 27-acre greenfield manufacturing facility.

The move will be a setback for the Punjab Government which is scouting investments. “This measure (closure) will be effective in the second half of 2018 and we will announce the exact dates around end of Q1 of 2018,” said Philips Lighting India spokesperson through an e-mail.

The spokesperson said the reason for the closure is the transformation in the lighting industry from conventional lighting to LED lighting.

“We are also evaluating our business and looking for ways to increase operational efficiency and improve our competitive position by reducing costs and accelerating innovation speed,” he added.

When asked about the company’s plan to set up new manufacturing line, he said the moment they didn’t have any such plan.

On being asked about the compensation package for employees, the spokesperson said they were working on a suitable compensation package for its full-time employees in line with local legal and statutory requirements and Philips Lighting India guidelines.

Setback for Punjab 

• The plant was set up in Mohali around 34 years ago
• It is engaged in the manufacturing of CFL lamps
• The move will be a setback for the Punjab Government which is scouting investments
• Earlier, in 2014, US information technology giant Dell closed its international operations in Mohali, citing decline in employees’ productivity due to slowdown in PCs sales