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Alok Industries bids for sought-after NTC mills
08 May '08
2 min read
National Textiles Corporation (NTC) has floated tenders for 12 of its mills in Maharashtra, Tamil Nadu, West Bengal, Uttar Pradesh and Kerala, expecting to foray into a joint venture with private enterprises.
As many as nineteen companies including Alok Industries, have expressed interest in contracting agreements for running the mills. However, of these, only eight will be selected. NTC floated the tender in January and expects to nail down successful bidders by July.
According to experts, not only is the land offered by NTC attractive, its also very lucrative for private companies since setting up greenfield units will prove to be more expensive.
In an exclusive interview with Fibre2fashion, Sunil Khandelwal, CFO, Alok Industries stated, “Apart from setting up our garmenting unit, we can use the additional area in the mill for other textile-related activities like design studio, training centre, textile labs, fashion show exhibition and such other purposes.”
Mr Khandelwal further confirmed that since its previous experience in the first tender had been good, the company wanted to venture for 2-3 other mills in the second tender. Private partners will be given the land for lease for a period of 33 years which can be extended to 99 years.
Under the joint venture, NTC will hold 51 percent of the stake while the rest will be held by private partners. Moreover, the board will comprise of 8 members of which 5 will be from NTC itself.
As many as nineteen companies including Alok Industries, have expressed interest in contracting agreements for running the mills. However, of these, only eight will be selected. NTC floated the tender in January and expects to nail down successful bidders by July.
According to experts, not only is the land offered by NTC attractive, its also very lucrative for private companies since setting up greenfield units will prove to be more expensive.
In an exclusive interview with Fibre2fashion, Sunil Khandelwal, CFO, Alok Industries stated, “Apart from setting up our garmenting unit, we can use the additional area in the mill for other textile-related activities like design studio, training centre, textile labs, fashion show exhibition and such other purposes.”
Mr Khandelwal further confirmed that since its previous experience in the first tender had been good, the company wanted to venture for 2-3 other mills in the second tender. Private partners will be given the land for lease for a period of 33 years which can be extended to 99 years.
Under the joint venture, NTC will hold 51 percent of the stake while the rest will be held by private partners. Moreover, the board will comprise of 8 members of which 5 will be from NTC itself.
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