The Hindu : Business : NTC targets operational profit

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Wednesday, Apr 11, 2007
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NTC targets operational profit

M. Soundariya Preetha

COIMBATORE: National Textile Corporation (NTC) aims to achieve operational profit this year. According to its Chairman and Managing Director, K. Ramachandran Pillai, the company registered a cash loss of Rs. 454 crore in 2002-03. It came down to Rs. 90 crore in 2006-07. "In 2007-08 we want to bring this to nil and achieve operational profit."

As part of a comprehensive revival programme, a process of organisation restructuring and technology upgradation was launched in NTC's mills from 2002-03. The company needed financial restructuring too. Its accumulated loss of Rs. 6,000 crore (interest and loan) should be written off or converted into equity. "NTC submitted a proposal to the Finance Ministry three months ago in this regard," Mr. Pillai told The Hindu.

To revive 18 mills

So far, NTC had spent about Rs. 80 crore for modernisation and planned to spend another Rs. 450 crore on this. Its outgo on the voluntary retirement scheme was Rs. 1,900 crore. It now had 13 lakh spindles in 40 mills, which would come down to about 10 lakh spindles by the end of this financial year. By the end of 2007, the company would have 22 mills modernised and directly under its control. It planned to revive another 18 mills through the joint venture route.

In 2007-08, NTC expected a minimum turnover of about Rs. 715 crore. This would be 20 per cent more than in the previous year. It had also signed a memorandum of understanding with the Ministry of Textiles detailing its targets for this year.

Mr. Pillai said the public sector company planned to reorganise its board by June and induct independent directors.

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