NTC (National Textile Corporation) stepping into Retail, ties us with Rosebys

National Textile Corporation (NTC) is about to return to retailing in a chic avatar by modernising its 100-odd showrooms as the state-run company looks to ride back to health and become an integrated textile and garment player.  “We are looking at the retail business to market our products to the end consumer,” said NTC managing director Ramachandran Pillai, adding that the company will partner a private retailer for the foray. Mr Pillai refused to divulge the partner’s name.

NTC had to close all shops after it was declared sick in 2005. The company has since been trying to nurse its business back to health by selling surplus land and overhauling operations at its mills. The company, which raised Rs 4,024 crore by selling prime property in Mumbai two years ago, plans to collect Rs 4,000 crore more from divesting surplus land in cities like Mumbai, Kanpur and Indore, said Mr Pillai.

On retailing, Mr Pillai said NTC will first revive four showrooms at Delhi’s upscale shopping destinations such as Khan Market and Kailash Colony. NTC has partnered home decor firm Rosebys to revamp these showrooms. The company could ask other private players to refurbish the remaining ones, said another NTC executive who did not want to be named. Rosebys CEO Alok Banerjee confirmed the development. “It’s a big opportunity for us,” he said.

NTC will also invest nearly Rs 650 crore to establish three integrated textile mills in Karnataka, Maharashtra and Gujarat, said Mr Pillai. Spinning aside, these projects will also make garments. “The production capacity of the units together would be about 1.32 lakh spindles,” said Mr Pillai, adding that internal funds are being used for the project. Mr Pillai said NTC’s restructuring efforts are bearing fruit. “Seventeen of the 18 modernised mills have turned profitable.”

The company sees turnover rising to Rs 550 crore in 2009-10 from Rs 418 crore a year ago.

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