Sai Silks Kalamandir (SSKL) has recently announced that it will assign 4.76 per cent of its shares to its employees trust. The aim of the trust is to improve the welfare and growth opportunities of its employees. The fashion retail company is also preparing for its initial public offering (IPO), for which it has already received approval from the Securities and Exchange Board of India (SEBI) in November 2022.
Durga Prasad Chalavadi is the managing director, SSKL, which was established in 2005 with a single operating store, and has grown into a chain of 54 stores. The company now employs 4,500 people and wishes to cultivate a workplace atmosphere that supports and values overall well-being of the employees.
As per media reports, Chalavadi decided to allot 4.76 per cent of the shares to the employees trust as part of the company’s plans to recognise and appreciate the employees’ efforts.
Employee benefit trusts are usually set up to hold assets to provide benefits for the employees of a company, business or group of firms (and sometimes also former employees and employees’ dependants).
The chain has stores across South India and has outlined its intentions to expand further by opening 25 additional stores and establishing two warehouses in Hyderabad and Chennai in the near future.
Additionally, the company has established its Kalamandir Foundation, and is actively engaged with employees and other deserving organisations in promoting sustainable and employee-friendly inclusive growth.