NTC intends to raise Rs4000cr thru sale of 10 mills in Mumbai
24 May '06
1 min read
National Textile Corporation (NTC) plans to raise around Rs4,000 crore by selling land of its 10 remaining mills in Mumbai, for which it has started negotiations with Government of Maharashtra.
NTC had earlier raised Rs2,000 crore last year through sale of land of its five mills in Mumbai through auction.
Corporation is planning to achieve turnover of Rs2,000 crore by 2008-09 and overcome its loss by this fiscal.
Out of 282 retail outlets which NTC had, the remaining 100 has been earmarked to sell its branded products.
As part of its effort to streamline its operations, the company has reduced its employees from three lakh to 21,000 and plans to raise Rs1800 crore to fund Voluntary Retirement Scheme (VRS) through bonds in tranches.
The company intends to pay Rs650 crore as interest on first tanche of bonds worth Rs250 crore, which is to be redeemed by Jan 2007.
NTC plans to modernise 22 mills at a cost of Rs530 crore whereas 29 mills will be restructured through private participation.
For this purpose, NTC has placed order for machinery for five mills with Texmatech Company of China.
marketing@alchempro.com
