After a prolonged illness, HPF breathes its last

  • | Thursday | 26th April, 2018

After a two-decade successful run, the film manufacturing company slowly turned into a sick unit. HPF, which was the only film manufacturing public sector company in the country, saw a downward trend from 1992, thanks to digitalisation and globalisation. But for more than four decades since its inception, the economy of the Nilgiris centred on tea, tourism and HPF. Its technology having become outdated, the company which once commanded a monopoly in film manufacturing was declared a sick unit by the BIFR in 2004. The company had over 5,000 employees three decades ago.Though HPF was considered a major industry in Ooty till the late 1980s, the company had a tumultuous existence.

Once considered an economy booster of the Nilgiris, the iconic Hindustan Photo Films Manufacturing Company Ltd (HPF), a public sector unit in Ooty, wound up on Wednesday, with 167 employees; the last batch of employees who had not availed themselves of VRS schemes in the past punched their attendance in the company for the last time.A notice from the government dated April 24, states that all remaining employees of the HPF stand relieved on June 30, 2016 and VRS benefits will be given accordingly. No salary will be paid for the period thereafter.HPF was inaugurated on January 7, 1967 by the then Prime Minister Indira Gandhi. After a two-decade successful run, the film manufacturing company slowly turned into a sick unit. HPF, which was the only film manufacturing public sector company in the country, saw a downward trend from 1992, thanks to digitalisation and globalisation. Its technology having become outdated, the company which once commanded a monopoly in film manufacturing was declared a sick unit by the BIFR in 2004. Yet, the procedural formalities of winding up of the company was pending with the government.On Wednesday, a notice issued by the deputy general manager (HR&A) read, "It is brought to the notice of all employees of the company that our administrative ministry, vide their communication No. 19(2)/2013 dated March 21, 2018, has informed that the department of heavy industry has decided to implement VRS to the remaining employees of HPF as per the directions of the Madras high court read with the order of the Supreme court dated February 19, 2018....’It spelt doom for the remaining employees.When contacted, Gireeshkumar, MD, HMT and in-charge CMD of HPF, said, "As per the government order, the remaining 167 employees were relieved. Based on the 2007 notional pay scale, the VRS benefits have been credited to their respective bank accounts. The land extending over 300 acre belongs to the state government will be handed over to the government… An official liquidator will be posted to settle the bank dues and to decide about the infrastructure there."Way back in 1958, for a newly independent India to be self-reliant, it was announced at the all India Convention of Photographers that a factory to manufacture photographic goods would be set up in Ooty at a cost of Rs 8 crore. However, by the time Indira Gandhi dedicated it to the nation in 1967, doubts were raised about the company’s location, technical feasibility and economic viability. But for more than four decades since its inception, the economy of the Nilgiris centred on tea, tourism and HPF. The company had over 5,000 employees three decades ago.Though HPF was considered a major industry in Ooty till the late 1980s, the company had a tumultuous existence. Even the best efforts of management experts could not find lasting solutions to the company’s woes. Liberalisation in the 1990s aggravated the company’s problems and it lost its foothold in the market. With huge amounts invested in buildings, the company found itself in deficit in working capital.HPF, known for its world-class ‘black and white’ film for decades, plunged into a severe crisis after the digital photography revolution. With a debt of over Rs 1,000 crore, the company had been struggling to function with little working capital and production was stalled.The film and X-ray manufacturing unit got a body-blow when it received the shocking ultimatum from the central government in October 2004 that HPF would be wound up.In different stages, VRS was offered and many employees left the company.Giants in the industry like Kodak came and studied the feasibility of entering into a joint venture, but backed out for unknown reasons.The company, once the ‘golden goose’ of this backward district, lost its ground after a 26-year battle.

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