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G. Gurumurthy

Coimbatore , Sept.13

THE newly formed Confederation of Indian Textile Industry (CITI) has sought to resurrect the debt-restructuring package that was announced for financially sick textile units two years ago, which failed to take off.

"We have now remodelled the scheme into a textile debt-restructuring fund and presented to the government; the proposal is likely to be taken up by the sub-committee of the Cabinet committee in a months' time," Mr Vinod Ladia, Chairman, CITI, said at the sidelines of the textile conference on `redefining textile business'.

Unlike the earlier package which offered only the ECB (external commercial borrowing) route, the new scheme has sought for a specified fund towards the restructuring cost, to be borne by the government and banks. The reworked scheme is also agreeable to banks. The deb-restructuring fund is to revive those categories of textile mills which are technically viable but financially weakened by the high cost of borrowings.

Mr Vijay Venkataswamy, Chairman of the Southern India Mills Association (SIMA), speaking at the conference, said that the quota dismantling had brought about the market pressure on textile manufacturers, as retail chains control 25 per cent of the global textile trade. The changed business environment had rendered textile manufacture more customer-centric. Even the most efficient yarn manufacturing mills, reputed for their quality, must lay emphasis on customer relations managements; divesting management from ownership is another aspect textile enterprises should give serious thought to, if they wanted to be relevant to the emerging market environment, Mr Venkataswamy added.

The SIMA Techno Facts Awards were presented to Premier Mills, Rajapalayam Mills, Narasihma Textiles and Kandagiri Spinning Mills Ltd for their operational performance.

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