Alok plans to convert NTC mills to garment units
Reuters India, India
MUMBAI (Reuters) – Textile firm Alok Industries Ltd plans to convert two struggling state-run spinning mills into garment units as part of a plan to revive them.
The company, which on Wednesday said it has formed two JVs with National Textile Corp to revive a mill each in Mumbai and Aurangabad, hopes to set up garment units with a capacity of 500 machines, an Alok official who declined to be named said.
“We have submitted the plan. The joint venture firm’s board needs to take a decision,” he said. “Spinning operations will be unviable due to high costs in Mumbai and strict pollution regulations do not allow processing.”
National Textile Corp will own 51 percent and Alok the rest in the joint venture firm, the official said adding investment numbers would be arrived at shortly.
The mills have about 500 workers each and the garment unit can absorb them, the official said.
The National Textile Corp had invited bids from top private textile firms to revive a clutch of mills.
Besides Alok, the Future group, which runs Pantaloon Retail (India) Ltd has won the rights to revive two mills in Mumbai and Bhaskar Industries another one, a National Textile Corp source said.
