NTC's Rs 250cr facility in Karnataka to commence soon
The government-owned National Textile Corporation (NTC) forays into the processing sector, setting up of a Rs 250 crore facility at Hassan in Karnataka.
July 26, 2011 / 17:07 IST
The government-owned National Textile Corporation (NTC) would mark its foray into the processing sector with setting up of a Rs 250 crore facility at Hassan in Karnataka, where the operations are expected to commence 'very soon', a top company official said today.
The facility, which is set up on 40-acres of land has 40,000 spindles and 48 shuttle-less looms for weaving, NTC's primary business, and would have a capacity to process 40,000 metres of fabrics per day, NTC Chairman and Managing Director K Ramachandran Pillai told reporters here.As the processing requires careful handling, particularly compliance of pollution norms, NTC is in talks with top companies in Germany and Italy for buying the necessary state-of the art machinery for diversifying into processing field, he added.Although NTC also felt the pinch of downward trend in the spinning sector like its peers, it plans to expand by adding 1.2 lakh spindles to its existing 7.2 lakh spindles across its mills by March 2012. The capacity would touch 12 lakh spindles by 2012-13, he said.The company registered a sales turnover of Rs 675 crore last fiscal and a gross profit of Rs 1,500 crore, including through selling of its surplus land.Exports of yarn and home textiles like bedsheets were to the tune of Rs 6 crore last year and are likely to touch Rs 25 crore this year, he said.NTC has modernised 18 mills taken over by it, Pillai, here to participate in a seminar on Technical Textiles, organised by CII, said.On selling lands belonging to NTC, Pillai said since NTC has decided to enter into technical textiles field, it was planning to set up a cluster in the sector and shortlisted some locations, like 135 acre in Kanpur, vast land in Vidarbha region of Maharsthra and also in Coimbatore.However, there was no immediate plans to sell Coimbatore land, lying in prime location, since it was required for its future project, he said.Modalities were being worked out for setting up technical textile cluster, with a minimum of 10 projects at a cost of Rs.250 crore, with private partnership and NTC providing infrastructure facilities like land and building and choice of the location would depend upon the private players, he said.NTC has already decided to set up a Rs.250 crore unit at Beevavar in Rajasthan for Geotech and Rs.60 crore project for Medical textile in Coimbatore, PIllai said. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
