The Hindu Business Line : NTC targets cash profits; confident of wiping out losses

State-run National Textile Corporation (NTC) is expecting to post cash profits by the end of this fiscal. "We are targeting cash profits... In any case, we are confident that the Corporation would be able to wipe-out its cash loss by the end of this financial year," Mr K. Ramachandran Pillai, Chairman and Managing Director of NTC, told Business Line.

The NTC group's accumulated losses as on end-March stood at Rs 9,829 crore.

The Corporation, which is implementing a turnaround strategy focussed on reviving and modernising 22 mills and the sale of most other defunct assets, is taking on board a consultant for the modernisation programme.

"We are evaluating three consultants at the moment and would shortlist one in the due course for this purpose," he said.

The entire modernisation drive, being executed at a cost of around Rs 530 crore, was being funded internally, mainly through sale of assets, he added.

NTC is also looking at reviving another 29 mills through private participation under the joint venture route, though not much headway has been made in this direction.

The Corporation plans to modernise the 22 viable mills in two phases through the installation of hi-tech textile machinery and by streamlining operations. NTC has already placed an order for machinery for five mills with China Texmatech Company and is in talks with both domestic and international machinery manufacturers.

The Corporation hopes to raise its annual production to 600 lakh kilograms of yarn and 250 lakh metres of cloth with expected annual turn over of over Rs 900 crore.

Mr Pillai said NTC hopes to do away with the dependence on budgetary support for paying out employee wages by this year-end and is confident of paying wages from internal resource generation.

The Corporation had brought down the number of employees from three lakh prior to the restructuring exercise to around 21,000 at present. For funding voluntary retirement scheme, it had raised Rs 1800 crore through bonds, Mr Pillai said.

NTC was incorporated in 1968 for managing the affairs of sick private sector textile units taken over by the Government.

Plans to sell 2 units

NTC plans to sell two of its properties in Mumbai this year and has initiated the sale process.

The Corporation has already sought permission from the Government for selling the properties, which are expected to fetch around Rs 1,000 crore.

Last fiscal NTC had raised around Rs 2,000 crore by selling the land at five of its mills in Mumbai through auction. The Corporation has, in all, sold assets worth 3,100 crore so far.