NTC to revive retailing

The National Textile Corporation (NTC) is about to modernize its 100-odd showrooms and

become an integrated textile and garment player. NTC had to close all shops after it was declared sick in 2005. The company will first revive four showrooms at Delhi’s upscale shopping destinations such as Khan Market and Kailash Colony. They partnered home decor firm Rosebys to revamp these showrooms. The company is contemplating asking other private players to refurbish the remaining showrooms.

 

NTC will also invest nearly Rs 650 crores to establish three integrated textile mills in Karnataka, Maharashtra and Gujarat, which will also make garments. The company says its restructuring efforts are bearing fruit and that 17 of the 18 modernized mills have turned profitable. NTC has 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 crores by selling prime property in Mumbai two years ago, plans to collect Rs 4,000 crores more from divesting surplus land in cities like Mumbai, Kanpur and Indore. NTC sees turnover rising to Rs 550 crores in 2009-10 from Rs 418 crores a year ago.