Dear Mohan,
You could have given further information like what is your finished product, which department you would like to close, how many employees are working in that department, what is the total percentage of employees in that department against total employees working in the factory etc.
When you wish to close particular department, two options are available to manage the employees in that department. The first one is transferring them to some another department. This is possible provided they have potential to work in other department. Country like Japan is famous for making their workers versatile, hence their transfer to some other department becomes smooth.
Second one is to retrench them. However, this is little ticklish issue as we need to find out whether provisions of ID Act, 1947 become applicable.
Every product has a life cycle. Over a period of time, it becomes economically unviable to continue with few products. However, change in product line happens over a period of time. When you introduced some new product, that time itself you could have discontinued with this product. Probably your company did not give sufficient regard to product life cycle management.
Anyway, give sufficient information and then only it is possible to give further solutions.
Thanks,
Dinesh Divekar