The plan includes phasing out women's sarees and dress materials and relocating its polyester filament yarn processing business around Silvasa, says an RIL press release issued here on Monday.

The exercise is aimed at further strengthening the leadership of Vimal and Harmony brands, enhancing their market share, fully securing and protecting the interests of all employees of the textiles business and substantially increasing overall shareholders value.

It is to be achieved through continued focus on Vimal mens' wear products, including blended and worsted suitings at Naroda and their exports and deeper penetration of nationwide retail showroom network, besides existing channels. Vimal is already a leading exporter in suitings.

The restructuring is likely to result in VRS for 3,000 people, representing nearly 20 per cent of Reliance Industries' total workforce of 15,000, contributing to less than 1 per cent of its total revenue.

"Reliance commenced business in India at Naroda and we have emotional ties with the operations here. We are proceeding with the plan to enhance our overall competitiveness and focus on higher margin Vimal and Harmony products," recalls RIL president (textiles business) K Narayan.

Its generous package for VRS, as well as an option in certain cases for alternative employment, depending upon their specific skills, has been arrived at in consultation with the recognised unions and has been approved by an appropriate order from the Gujarat industrial court.

However, he points out, Reliance will remain one of the largest employers in Gujarat and that in the private sector in India, even after the VRS. The overall package will have an estimated outlay of nearly Rs 80 crores. It includes:

1) A generous compensation for every year of continuous service.
2) An ex gratia for every year of remaining service up to the age of retirement at 60 years, and.
3) Gratuity for every year of continuous service.