India’s top paper towels company has offered $2.5 million to its employees in the country, in what is expected to be the biggest salary increase in the sector in years.
The pay hike follows a year of sharp falls in the paper towels industry, which is seen as one of the most vulnerable sectors to a slowdown in China.
In an interview with The Associated Press, Jyotirao Thapa, head of Indian operations at Jyoti Enterprises, the country’s biggest paper towel maker, said the pay increase would help the company to remain competitive with rivals and attract new customers.
The company has said it has already signed up about 5,000 employees, while it is also preparing to increase the pay of workers from Rs. 3,000 to Rs. 5,600 a month.
Jyoti’s pay increase was announced at a ceremony on Thursday by India’s Chief Minister Narendra Modi, who visited the company’s headquarters in Mumbai.
Modi also announced the formation of a national initiative to increase productivity of Indian paper towels makers.