UPL has reduced its employee-related costs by around 15 per cent year on year in the second quarter of FY27, partly by relocating roles from higher-cost markets to its Global Business Services (GBS) centres in Pune and Mauritius.
The agrochemicals company has nearly tripled the combined workforce at its GBS centres over the past two years, as it transferred a significant volume of work from higher-paid geographies. The shift forms part of a broader change in its operating model.
Speaking during the company’s Q2 FY27 earnings call, Bikash Prasad, group chief financial officer, attributed the reduction in employee costs to the relocation of roles to lower-cost markets, favourable foreign exchange movements and savings from changes to the company’s target operating model.
UPL operates three GBS centres, with Pune serving as its largest facility, while its Colombia centre supports Latin America and Mauritius caters to Africa and Europe. The company has not disclosed the current headcount at these centres or the exact savings generated through the relocation of roles.
The centres are also intended to strengthen internal controls and build centres of excellence, rather than function solely as cost-reduction hubs.
UPL had incurred higher employee-related expenses in the previous year while implementing organisational changes. The benefits of those changes are now reflected in its latest financial results.
However, the company has cautioned that foreign exchange movements also contributed to the decline, meaning the entire reduction may not represent recurring savings.
The company plans to continue pursuing cost optimisation across employee expenses and other areas.
