"The VRS will be open for all 1,800 Cadbury employees in the non-management category all over India. The scheme will be operational from November 1 to November 30," said company sources.

The pension scheme offers an average monthly payout of Rs 1,500 to Rs 2,000 per employee. In case of death of a pensioner, his dependents will receive about a 100 times the monthly pension amount as a lumpsum payment. The normal medical allowances that an employees would have enjoyed while in service would continue to be paid even after taking up the VRS. The lumpsum retirement benefit per employee would be Rs 5 lakh. The average payout per employee, inclusive of all benefits, would work out to Rs 8 lakh. Besides a reduction in the headcount,the company is considering a number of options to generate revenue while keeping expenses under check. First on the company's agenda is to generate funds from excess real estate. It is planning either a sale or lease of its corporate headquarters -- Cadbury House-and the residential complex next to it overlooking Bhulabhai Desai road in South Mumbai. If the property is suitably utilised, Cadbury may relocate itself to a cheaper location.

The Cadbury factories are located at Thane (a north-east Mumbai suburb) and Induri in Maharashtra and at Malanpur in Madhya Pradesh. A long-term wage settlement has been signed with its employees at Thane. Settlement talks at the Malanpur factory are in progress. Cadbury has a total employee strength of about 2,000, including those in the management cadre.

For the quarter ended October 10, the company recorded a net profit of Rs 13.62 crore against Rs 10.35 crore in the corresponding period last year. Net sales for the quarter stood at Rs 166.77 crore compared with Rs147.46 crore in the previous period. About 70 per cent of Cadbury's sales come from chocolates. Cadbury India has been undertaking a restructuring of its India operations by trying to cut down on expenses and increase investments on its key brands. Though sales grew by 21 per cent to Rs 428.33 crore during 1998, the sugar and confectionery food drinks segments did not grow as expected, according to the company. The growth in profit was possible through a better sales mix and tight control on material and indirect costs.