Downsizing Manpower Or Transferring To Other Unit

I am working for a company(Manufacturing Unit) as a Unit Head. The management has now decided to shift the Company from one state to another and asking for all the employees to shift there some of whom are not willing to come there.
What can we do for the above situation and what will be the circumstances if somebody doesn't want to come there.
Regards,
Vishal

Dear Vishal,
Your options are few. Since you can no longer maintain even a smaller office , at the current location, you may either offer your employees benefit to shift into the new location or outplace them.
What are you challenges towards compensating them to move ? What are their reason not to shift to a new location?
Am sure, this didn't happen over night. How have you been communicating with your employees, since the planning for new location started?
If the reasons are dire , the employees might just not shift. In that case you can decide upon a temporary transfer for a fixed duration.
A fresh talent hunt and training them , might cost you both time and revenue. Please consider compensating the existing ones , till the time they can stay in the new location and you can find a new batch of employees.

Your manufacturing unit is shifted to other location.
You can circulate this to all employees in writing if you need them in new location. You need to ensure that cost of living will differ from location to location. So you need to take care of that and provide adequate benefits to them like relocation allowance, cost of living allowance and many more. Take employee into confidence and motivate them for new experience and challenge.
You should send letter to employee to shift to new location if they are not they will terminate the service. You need to keep in mind that hiring and training will be incurred cost and time.
Transition phase will be very crucial for you as unit head.

Dear Mr. Shaikh Abedeen/Ms. (Cite Contribution),
We are ready to give them all the allowances and benefits but still if somebody doesn't come what action can be taken? and whether any such action will incurr labour union or Labour commisioner wrath?
The transfer clause is there in their appointment letters.
Regards,
Vishal

Further more can we terminate their services or simply ask them to leave? If we terminate what compensation do we need to give?

I believe your unit is covered under Factories Act. There are legal implications also you need to inform labour department prior to some days of shifting. I don’t remember the exact days. There are policy and procedure laid for this you may consult with labour department.
If you don’t clear F&F of workmen you may be sued in labour court. If you want to retrench them then you need to pay 15days salary for every completed year, notice pay, gratuity, bonus and etc as applicable.
Give every employee letter mentioning that your new assignment will be at location name from date. If they disagree they will reply and this is violation of employment contract. Then you may terminate their services as mentioned in the employment contract.
I am not working on industrial relation for more than two years so I may be wrong in some cases. Seniors please guide us.

(Cite Contribution) Ji,
Can you please put some more light on the issue?
Regards,
Vishal

All those who do not want to shift it the new state will need to be retrenched.
You need to follow the procedure under industrial dispute act.
As stated above by Abdeen, you,will need to pay retrenchment compensation.

Dear Vishal,
I havent worked in factory, hence can't share the operational details to retrenchment. Here's what I found, to be followed during the retrenchment mentioned under the provisions to Industrial Dispute Act 1947. Its a detailed account of what needs to be considered and implemented.
To research further on it , you may consider reading Chapter V-A and V-B
Industrial Dispute Act 1947 - Retrenchment