With the modernisation of its 24-odd textile mills having been completed, the National Textile Corporation (NTC) has posted a Rs 9.30 crore cash profit for the first year. According to company officials, NTC looks to recover the Rs 1,300 crore it had plowed into the modernisation within next 6-7 years.
"Though minor alterations will continue, we completed the revival plan of modernising the textile mills only last year. It is a good sign that collectively the 24 mills have posted a cash profit. Our target is to recover the Rs 1,300 crore that we had invested for modernisation of these mills in next 6-7 years," said K Ramachandran Pillai, chairman and managing director of NTC.
As per the revival plan approved by Board for Industrial & Financial Reconstruction (BIFR), NTC has revived 24 mills directly by itself by investing in their modernisation.
The revival scheme was self- financed through sale of surplus assets of NTC and no financial assistance was provided by the Government of India.
"Post revival, the mills are now almost at par with any private textile plant and are gearing up to market their products in the textile industry. The profitability has come because of the increase in business for these modernised mills," said Pillai.
"Since almost all the mills are indulged in spinning and weaving, the modernised NTC mills have to depend on market sentiments in the textile industry. We would like to achieve the recovery soon but it will take some time before these mills gain momentum in the domestic as well as exports markets," said Pillai.