India: 15 out of NTC’s 23 working mills register profit in 2012-13

Company Performance

India: 15 out of NTC’s 23 working mills register profit in 2012-13

In a significant turnaround from 2011-12, 15 out of the total 23 working units of National Textiles Corporation (NTC), have generated cash profits in 2012-13, Parliament was informed yesterday by Minister of State for Textiles Panabaaka Lakshmi.

Among the mills which have witnessed profits, Finlay (Achalpur, Maharashtra) registered a maximum profit of Rs 104 millions, followed by Rs 45.1 millions of Madhya Pradesh-based Burhanpur Tapti and Rs 26.1 millions of Kerala-based Vijay Mohini, she added.

NTC’s and government’s revival strategy, through modernization and corporate collaboration is bearing results. Finlay Mills which showed maximum profit, is a Greenfield composite textile mill with state-of-the-art machinery of 144 shuttleless looms, 48,000 spindles and a capacity to dye 4,000 kg of yarn and process 60,000 meters of fabric per day which became operational in 2009. Last year none of the mills registered a profit, underutilized capacities, were affected by cotton price volatility and supply chain disruption.

Asked if the output of various NTC millshave declined in the last three years, she said, "There is no reduction in the overall production in NTC mills during the last three years except for minor variations due to power cut and labor shortages in certain mills.”

Further, Lakshmi said, NTC has offered Modified Voluntary Retirement Scheme (MVRS) to all its employees of the closed mills as per the Board for Industrial and Financial Reconstruction. "Till date, 63,196 employees have availed the benefit of MVRSand an amount of Rs 23495 millions has been paid as compensation," she added.

MVRS, alongside retraining and redeployment are the compensation modules that NTC is adopting for its employees who were affected by mill closure. This drive too, apart from its modernization, is largely being run through the generation of funds from within the NTC’s businesses itself.