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Public Sector Undertakings
NATIONAL TEXTILE
CORPORATION LIMITED (NTC)
BACKGROUND National Textile Corporation Ltd (NTC) was set up with the main objective of managing the affairs of the Sick Textile Undertakings taken over by the Government. It was also proposed to rehabilitate and modernize these Mills after the take -over and expand them wherever necessary with a view to making them economically viable. NTC was incorporated
in April, 1968 and started functioning in October, 1968. At present there
are 119 mills , controlled by the Holding Company and its 9 subsidiary
Corporations namely, NTC(APKKM),NTC(DPR), NTC(MP) , NTC(MN), NTC(SM), NTC(GUJ),
NTC(TN&P), NTC(UP) & NTC(WBABO).
CAPITAL STRUCTURE The NTC Ltd. (Holding
Company) started with an Authorized Capital of Rs.10.00 Crores, which was
raised from time to time. It stands at Rs. 600 Crores as on date. The paid
up capital as on date is Rs. 512.10 Crores.
CAPACITY The Installed capacity
of the mills under the NTC as on 30.06.99 was 31.83 lakh spindles and 29621
looms The commissioned capacity was 27.27 lakhs spindles and 19406 looms.
PERFORMANCE DURING 1999-2000 Financial Results During the period April-Sept. 99 NTC group has reported a provisional Net Loss of the order of Rs. 498 Crores. The Group’s anticipated loss for the year 1999-2000 is of the order of Rs.996 Crores. The Cash Loss suffered by the Group before depreciation, tax and interest on Government loans is of the order of Rs.341 Crores (Provisional) for the period April-Sept 99. Looking at the trend, the cash loss for the year 1999-2000 it is likely to be of the order of Rs. 682 Crores. Four major factors,
namely, shortage of working capital, stoppage/curtailment of activities,
payment of idle wages to employees and lack of modernization put together,
are responsible for deteriorating performance of NTC mills.
PERFORMANCE INDICATORS a) Production During the period April-September, 1999, NTC mills have reported a production of 16.02 million kgs of Market Yarn (own) and have undertaken job work of yarn to the extent of 12.56 million kgs. The annual production is estimated to be of the order of about 55 million kgs, including job work. NTC mills have produced
20.39 million meters cloth (own) during the period April-September 1999
and have undertaken job work for cloth production to the tune of 3.00 million
meters during this period. The annual production of the cloth, both own
production as well as job work, is expected to be of the order of about
50 million meters.
b) Turnover The sales of the Market yarn (own) in value terms for the period April-September 1999 is approx. Rs.153 crores. During this period, the mills have also earned Rs 30.28 Crores by undertaking job work of market yarn. The estimated turnover for the whole year 1999-2000, for yarn, both own production as well as job work is expected to be around Rs. 366 Crores. The sale of cloth (own) in value terms for the period April-Sept.’99 is of the order of Rs. 56 Crores. The mills have also earned about Rs2.06 Crores during April-Sept.99, by doing Job Work for cloth production. The turnover, including sales through retail marketing for cloth for the whole year is expected to be of the order of about Rs 116 crores. The total turnover of NTC group in 1999-2000 is expected to be about Rs. 482 Crores. The average sales realization of market yarn and cloth for the year 1999-2000 is expected to be Rs.94.00 per kg. for market yarn and Rs.27.96 per mtr. for cloth respectively. c) Exports Exports in value terms during the period April-September, 99 were Rs. 8.95 Crores and expected to touch Rs. 18.00 Crores for the whole year 1999-2000. d) Employment At the end of Sept.99, there were 89846 employees on roll. As per the 1995 Turn Around strategy 62086 workers and 7385 Officers and staff totaling 69471 employees were identified as surplus. Since Sept. 1992, when Voluntary Retirement Scheme was introduced, 60315 employees have opted for VRS up to September, 1999. e) Working Status Due to acute shortage of funds of working capital and other reasons, the mills, under NTC Group could not utilize their full capacities. Most of the mills are dependent on job work for private parties. The working status of mills during the month of Sept.,1999 was as under :- i) Mills with no
activity 39
(Included in ii and
iii above)
REHABILITATION The overall provisional accumulated net loss of NTC Group as a whole as on 31.9.1999 is Rs.6840 Crores. 8 out of the 9 Subsidiary Corporations have been referred to BIFR which has declared them as Sick industrial companies under the provision of the Sick Industrial Companies (Special Provisions) Act, 1985. The BIFR has also appointed Operating agencies for drawing up rehabilitation plans. The rehabilitation plans for all the 8 subsidiary corporations of NTC were placed before the BIFR for their approval before implementation. The BIFR has issued show cause notices for winding up of NTC(MP) Ltd. NTC(GUJ) Ltd., NTC(WBABO) Ltd. and NTC (UP) Ltd. Draft Rehabilitation Schemes in respect of NTC (APKKM) Ltd, NTC (DPR) Ltd., NTC (SM) Ltd. and NTC (MN) Ltd. asking for relief and concessions from the Government of India, State Governments and other Institutions have been published. A final decision on these proposals is yet to be taken. To arrest further
deterioration in the working conditions in the mills, NTC has commissioned
studies by Textile Research Associations in working mills.
THE BRITISH INDIA CORPORATION LIMITED (BIC) , KANPUR The British India
Corporation Ltd. was taken over by the Government of India on 11.6.1981
by acquisition of all private shares. The BIC has two woollen mills, namely,
Cawnpore Woollen Mills Branch (Lalimli) and New Egerton Woollen Mills Branch
(Dhariwal) under its direct control. Besides it has two cotton Subsidiary
companies, namely, Elgin Mills Co. Ltd. and Cawnpore Textiles Ltd. The
two woollen mills have 10,176 woollen spindles and 22,092 worsted spindles,
518 powerlooms and 162 handlooms. The total share capital of the BIC is
Rs.44.65 crores out of which the share holding of the Government of India
is Rs.42.96 crores. The total number of employees in the BIC is 4,334.
FINANCIAL PERFORMANCE The cash loss for
the financial year 1997-98 was Rs. 32.67 crores while the cash loss for
the year 1998-99 (Prov.) was Rs. 48.40 crores. Its cumulative cash losses
upto 1998-99 (Prov.) were Rs. 350.17 crores as against which cumulative
cash loss reimbursement including amounts released for salaries and wages
have been Rs. 183.92 crores upto 1998-99, leaving an unbridged cash loss
of Rs. 166.25 crores. The main reasons for losses suffered by BIC Ltd.
include obsolete machinery, excess man-power, shortage of working capital
etc.
PHYSICAL PERFORMANCE The capacity utilisation
for the year 1998-99 is 5.48% in worsted spindles and 10.72% in the woollen
spindles, while the capacity utilisation in weaving sulzer looms is 19.19%
and in old power looms 1.81%. The value of production is Rs. 4.14 crores
(Prov.) as against Rs.7.88crores for last year. The decline in production
has been due to shortage of working capital, excess man-power and obsolete
machinery etc.
REFERENCE TO THE BIFR In 1993, the company was referred to the BIFR which declared it a Sick Industrial Company. The BIFR passed orders on 31.10.94 recommending the winding up of the Company. Against these order of BIFR, the Company filed an appeal before the AAIFR on 26.12.1996. The AAIFR also dismissed the appeal of BIC at its hearing held on 9.5.97 as the AAIFR felt that no rehabilitation scheme was feasible for the BIC Ltd. The matter is pending in High Court, Allahabad. The Government asked
the Wool Research Association (WRA) to prepare Techno-economic Viability
Reports of the two woollen mills separately to consider the feasibility
of reviving the units/Company. The report was submitted by WRA to Ministry
of Textiles in February, ‘98 and is under active consideration of M.O.T.
THE ELGIN MILLS COMPANY LIMITED, KANPUR The Elgin Mills Company
Ltd., is a Composite Textile Mill known as Elgin Mill No. 1 and Elgin Mill
No. 2 and is a subsidiary of the British India Corporation Ltd., Kanpur.
It has an installed capacity of 1,18,092 spindles and 2,376 looms and employs
2827 workers & staff as on 31.10.1999.
Physical & Financial Performance The capacity utilisation
both spinning and weaving for the year 1998-99 was ‘Nil" ( the operation
has been totally stopped since December, 1995). The Company incurred a
loss before charging interest and depreciation of Rs.16.15 crores in the
year 1998-99. The accumulated net loss as on 31.3.1999 stood at Rs.594.23
crores including interest of Rs.259.68 on Government loan.
Voluntary Retirement Scheme Voluntary Retirement Scheme was implemented with effect from 15.10.92. Upto 31.10.1999 a sum of Rs.58.78*crores has been released by the Ministry of Textiles, out of which, Rs. 45.82 crores has been disbursed for giving VRS to 4610 employees. * it includes Rs.11.87
crores returned to Government.
Reference to the BIFR Legal position indicating the status of winding up proceedings as per the order of BIFR. BIFR on September,
1994 recommended winding up of the Elgin Mills Company Ltd., before the
Hon’ble High Court, Allahabad. The appeal preferred by the Company before
AAIFR against the order of BIFR has been dismissed on 9th May, 1997. The
Hon’ble High Court, Allahabad has passed order for winding up of the Company
on 29th September, 1999 and subsequent interim order has been passed by
the Hon’ble High Court on 13th October, 1999.
CAWNPORE TEXTILES LIMITED, KANPUR The Cawnpore Textiles
Limited is a Cotton Textile Subsidiary of the British India Corporation
Limited, located at Kanpur. It has an installed capacity of 37800 spindles
and 604 looms per shift and employs 1446 workers and staff per day as on
Ist November, 1999.
Physical & Financial Performance The production has
been completely stopped since 12th May,’97 after the disclosure of Government
order discontinuing the Budgetary support against salary & wages and
VRS after 11th August, ‘97 (original date since extended upto 29th Sept.’99).
The Company incurred losses, amounting to Rs.7.78 crores before interest
and depreciation during 1998-99. The expected losses before interest and
depreciation during 1999-2000 would be Rs.7.50 crores approx. The accumulated
net losses as on 31.3.99 stood at Rs.100.11 crores including interest amounting
to Rs.47.43 crores on Government loans and anticipated net accumulated
losses as on 31.3.2000 would be Rs.117.64 crores.
VOLUNTARY RETIREMENT SCHEME The Voluntary Retirement
Scheme was implemented in the Company since August ‘92 and the employees
retired under the Scheme as on 31.3.99 are 1097. The Ministry of Textiles
released a sum of Rs.16.50 crores upto 31.3.99 for the said purpose, out
of which Rs.6.90 crores was refunded to Ministry of Textiles on 18.3.99
and Rs.0.53 crore was received from the British India Corporation Ltd.
as temporary assistance under VRS upto 31.3.99 ( since returned). Rs.10.13
crores has been utilised for payment to 1097 employees retired under VRS
upto 31.3.1999.
REFERENCE TO BIFR Legal position indicating the status of winding up proceedings as per order of BIFR. BIFR in January ‘95
recommended winding up of Cawnpore Textiles Limited before Hon’ble High
Court, Allahabad. An appeal was preferred by the Company before AAIFR against
the aforesaid orders, which was dismissed on 9th May, 1997 and the matter
was referred to the Company Court at Allahabad High Court, which has passed
an order appointing a Liquidator on 29.9.1999. However the same has been
stayed by a Division Bench on 28.10.99 and the matter is pending for final
hearing.
BIRDS JUTE & EXPORT LTD.(BJEL), CALCUTTA The Birds Jute & Export Ltd., is the only subsidiary Corporation of the National Jute Manufacturers Corporation (NJMC) Ltd. This company has been incurring losses for the last several years. The total sales have decreased from Rs. 1.66 crores in 1994-95 to Rs. 0.19 crores in 1998-99. The loss for the year 1998-99 was Rs. 3.74 crores in comparision to Rs. 2.45 crores in 1994-95. The accumulated loss of the Company as on 31.03.1999 was Rs. 26.88 crores. The reasons for loss were the steep increase in input price, high increase in wage costs and huge interest on loans. BJEL had undertaken the following steps to improve its performance and financial position:- a) Modernisation & Diversification programme b) Programme for disposing off the excess land by leasing to reduce loan liability & c) Programme for enhancing the estate income. The company has been referred to BIFR on 09.03.1998 under the SICA, 1985. As per the balance sheet (abstract), the following has been the performance of BJEL (1998-99):- a) Turnover including other income 60.75 lakhs b) Total expenditure 408.99 lakhs c) Profit (loss) before tax -348.24 lakhs d) Profit (loss) after tax -348.24 lakhs e) Earning per share in Rs. Nil f) Dividend Nil
NATIONAL JUTE MANUFACTURES CORPORATION LIMITED (NJMC), CALCUTTA BACKGROUND National Jute Manufactures
Corporation Limited (NJMC) was incorporated in 1980. There are six nationalised
Jute Mills under its management of which five are located in and around
Calcutta and one at Katihar, Bihar. NJMC is the only Public Sector Undertaking
engaged in Jute goods manufacture. The Undertakings of the six sick Jute
Mills viz. National, Kinnison, Khardah, Alexandra, Union and RBHM, the
management of which were earlier taken over by the Govt. under the Industries
(Development & Regulation) Act 1951 were nationalised and vested in
NJMC. The Mills produce traditional Jute goods like Hessian, Sacking, Jute
Twine and also Jute Carpet Backing Cloth (CBC). The plant & machinery
of the six Jute Mills were installed about a century back resulting in
poor condition of Plant & Machinery due to normal wear and tear coupled
with age-old technology of the machinery. Prior to nationalisation, all
NJMC Mills were lying closed for a long time and were taken over under
the Industries (Development & Regulation) Act 1951. The condition of
machinery and other equipment such as generators, boilers, etc. were in
very poor state and needed urgent repairs / replacement. Most of the mills
had also problem of lay-out and other infra-structural deficiencies.
MODERNISATION After nationalisation,
NJMC took a Modernisation & Renovation Scheme (M&R) in the year
1981-82 with a total outlay of Rs. 28.34 Crores for five of the six jute
mills of NJMC with the object of increasing productivity by achieving higher
capacity utilisation and improving profitability by changing product-mix
with emphasis on renovation within existing technology. However, the flow
of Fund for the said scheme was suspended by the Financial Institution
(IIBI) for four years from 1983 to 1986. The time over-run of four years
resulted in cost over-run, necessitating pruning and re-orientation of
the original schemes. After reviewing the schemes afresh, the Financial
Institutions resumed funding in 1987 with the Government of India agreeing
to increase its participation in the funding and sanction financial reliefs
to NJMC. The set-back in the implementation of M&R Schemes for four
years resulted in further deterioration of the condition of the existing
machinery apart from time and cost over run. A Rescue-cum-Rehabilitation
Programme of the 6th Unit i.e. R.B.H.M. at Katihar was undertaken in the
year 1988-89 for replacement of obsolete machinery by the existing technology
with total outlay of Rs. 3.75 Crores. The Government of Bihar contributed
Rs. 1.50 Crores for implementing the scheme and the balance amount was
given by the Government of India.
PRESENT PERFORMANCE Due to shortage of
Working Capital as mentioned above NJMC could not procure adequate Raw
Material to build up stock of jute timely and economically. As a result,
within the limiting factors the savings and benefits achieved in quantitative
terms are being steadily eroded by steep escalation of cost of inputs,
specially raw material, labour, power and fuel, interest charges etc. Due
to accumulation of past losses, the net worth of the Corporation has become
negative. In addition, the inability to reduce cash losses has severely
affected the working capital due to which it has become extremely difficult
to maintain the day to day operation of the mills. Failure to build up
stock of raw materials for want of working capital had resulted in decrease
of drawing power from the cash credit account with the Banks which caused
further erosion of working capital.
REFERENCE TO BIFR NJMC has been suffering cash losses since inception on account of various reasons as mentioned above. In view of continuous cash loss and complete erosion of net worth, NJMC was referred to the Board for Industrial and Financial Reconstruction (BIFR) on 11th Aug., 1992. Thereupon BIFR declared the Company as a Sick Company under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985. Subsequent to the Corporation being referred to BIFR and the Board declaring NJMC a sick company, Turn Around Plans (TAP) have been prepared from time to time. The previous TAPs could not be finalised as the BIFR directed the Operating Agency (OA) to update the package further by the company since preparation of their last report. The Operating Agency,
the Industry Investment Bank of India (IIBI) has now submitted a Draft
Rehabilitation Scheme (DRS) based on the accounts for the year 1996-97
and provisional accounts for 1997-98. The total cost involved in implementation
of the Draft Rehabilitation Plan is Rs. 281.73 Crore in addition to the
sacrifices to the tune of approximately Rs. 2000 Crores required to be
made by the Govt. of India towards waiver of loans & interests thereon.
The DRS is under consideration of government.
THE JUTE CORPORATION OF NDIA LTD. (JCI) Calcutta The Jute Corporation
of India Ltd. is the official agency of the Govt. of India in implementing
its policy of providing minimum support price to the jute growers and to
serve as a stabilising agency in the raw jute sector. However, in years
when prices of raw jute had ruled above the minimum support level the JCI
had also undertaken commercial operation. It has completed 28 years of
service to the jute growers in April’99.
INFRASTRUCTURE JCI had set up a
field network of 208 procurement centres in 45 jute producing districts
in 8 Eastern States of India and provided support to 4 million small jute
farmers when the prices rule at or below the minimum support price (MSP)
fixed by the Govt. of India. The jute so procured was sold during periods
of shortage with the resultant stabilising effect in raw jute prices in
other years when MSP operations were not called for. The Ministry of Textiles
had, however, advised the JCI to reduce its manpower by 25% and bring down
the administrative and establishment costs. Accordingly, to make the JCI
more cost effective, a detailed study was undertaken for restructuring
the purchase centres of JCI through assessment of their performance for
seven years for the period from 1985-86 to 1992-93 (1985-86 & 1986-87
were years of highest procurement of 28 lakh bales and 22 lakh bales respectively
by JCI.) On the basis of this study, the Corporation has closed down 37
centres on an objective basis and in a transparent manner looking at its
commercial viability. Through implementation of the Voluntary Retirement
Scheme as well as natural separation by way of superannuation, death, resignation,
termination etc. it has since been possible to bring down the manpower
of the Corporation by over 16% and fresh recruitment from outside has been
banned by the Ministry in 1992. Currently the JCI is operating through
171 purchase centres situated in seven Eastern States. JCI will increase
its presence in the market by making use of the rural infrastructure available
with the agencies of the State Govts. like Agricultural Produce Market
(APMCS), Coop. Societies etc.
RANGE OF SERVICES PROVIDED i) MSP operation for the benefit of marginal jute farmers and commercial operation at prices above support level depending on the raw jute market situation. The Corporation procured 0.54 lakh bales in 1998-99 including 0.09 lakh bales under MSP operation. Upto 20.10.99 the JCI procured 0.93 lakh bales (0.11 lakh bales MSP operation and 0.82 lakh bales under commercial operation) in the current season and procurement is still continuing. ii) Pioneering the establishment of BIS standards for raw jute grading. Due to strict quality control, jute purchased and packed by the Corporation fetches a premium in the raw jute market. iii) Export and Import of raw jute depending on domestic availability and International prices. iv) Acting as Inspection Agency of the Government prior to export of raw jute as and when called for. v) Spearheading the marketing of non-traditional jute products in collaboration with the Jute Manufactures Development Council (JMDC). The JCI had first set up an emporium named ‘SONALI’ at Calcutta in association with the JMDC for promoting production and sale of non-conventional jute products like jute utilities and specialities. Subsequently another emporium was set up at Bhubaneswar in Orissa. Following the lead given by JCI, a number of other Govt. emporia and private concerns have since taken up the sale of diversified jute products. A growing number of production units in the decentralised sector producing various jute based handicrafts products have since entered this field thereby opening a new horizon for self employment. Recently as per decision taken by the Govt. the emporia at Bhubaneswar has been closed down. vi) Dissemination of knowledge to jute growers in respect of jute quality improvement through better techniques has been undertaken by the Corporation envisaging various extension services especially designed for jute growers in increasing productivity and quality of jute through a package of measures like sale of certified jute seeds etc. Under the Jute Quality Improvement (Retting Technology Project) undertaken by the JCI with the financial assistance of the Govt. of India and UNDP, 7 pucca community retting tanks in various jute growing States (4 in West Bengal and 1 each in Assam, Bihar & Orissa) have been constructed and field level demonstrations of improved jute retting technology were undertaken. This project also included the development of simple and cost effective mechanical devices for extracting fibre. On successful completion of this project, Govt. of India has again entrusted JCI to function as a Nodal Agency for implementation of two more projects - one for construction of 14 cost-effective community retting tanks (5 in Assam, 5 in A.P. & 4 in Bihar) on 50 : 50 cost sharing basis between the Govt. of India and the respective State Govts. Under this project, construction of one community retting tank in Assam and two in Bihar has already been completed. These community retting tanks are being used by local jute growers for jute retting, fishery and other household work. (2) A project on further development of a manual/power driven ribboner machine for extraction of fibre from green jute plant has also been undertaken under which two ribboner machines have been developed one by IJIRA and the other by NIRJAFT. The two machines are under field trial. vii) Providing services
in the field of market research and acting as a decision support system
in the field of agricultural marketing.
DATA ON PHYSICAL AND FINANCIAL PERFORMANCE The relevant data
for 1998-99 and 1999-2000 up to 20.10.99 and projected figures up to 31.03.2000
are given below:
THE COTTON CORPORATION OF INDIA LTD.(CCI), MUMBAI The CCI was set up in 1970. It came into existence with the objective of acting as the canalising agency for import of cotton and undertaking purchase of raw cotton for giving necessary price support to enterprising cultivators growing new varieties of cotton developed as substitute for imported Long and Extra Long Staple Cotton and also for procuring raw cotton for textile mills both in public and private sector. Over the years its operations have undergone significant changes in keeping with the development which have taken place in the Indian Cotton Economy during the past two decades. Subsequent to the announcement of the Textile policy of 1985, CCI’s role was expanded to carry out commercial operations for meeting the cotton requirements of institutional buyers and to fulfil the export quota allotted to it by the Government. The Sales turnover of the Corporation is expected to be around Rs.697 crores during the year 1999-2000 as compared to Rs.778 crores in the year 1998-99. The net profit after tax was Rs.18.91 crores in the year 1998-99 as against Rs.28.17 crores in the previous year. The ratio of operational profit to turnover of the Corporation worked out to 2.24 per cent in 1998-99. The CCI’s sales of cotton to the quality conscious mills in the private sector (particularly the 100% Export Oriented Units) increased from 65.04% during 1997-98 to 72.2% during the year 1998-99. The sales to NTC mills registered a decrease of 13.6% during the year under review, mainly on account of financial crunch faced by these mills which had forced them to work below their capacity. The CCI intensified its developmental activities during the year while continuing the existing activities and taking up new ones during the year. These were basically aimed at increasing production, productivity of cotton and also for improvement in the processing of cotton. The developmental activities involved Village Adoption Programme for dissemination of technology to the farmers to increase the yield per hectare, production and distribution of genetically pure certified seeds, distribution of pesticides to cotton growers, production of genetically improved parental lines of DCH-32 variety, funding Research Projects for genetic improvement of parental lines of DCH-32 Hybrid cotton in Karnataka, crop surveillance Research Projects on Naturally coloured cotton, promotion of medium staple cotton, bringing new areas under cotton, etc. For the various developmental activities listed above, the Corporation budgeted an expenditure of Rs.11.00 crores during 1998-99. The CCI also implemented an Action Plan to modernise the Ginning & Pressing Factories with a view to ensuring contamination free processing of cotton for improvement in quality and also for ensuring that processing of cotton conforms to BIS norms. The CCI continued with this incentive scheme during 1998-99 and incentive amounting to Rs.26.13 lakhs were given to Ginning and Pressing Factories in the different States. The Corporation has
been able to achieve all the targets set under the Memorandum of Understanding
(MOU) signed by it with the Ministry for the period covering 1997-98. The
performance of CCI as per MOU for 1998-99 is rated as ‘Very Good’. The
MOU for 1999-2000 has also been signed with the Ministry on 30.3.99.
PROCESSING OF COTTON WITH LEAST CONTAMINATION With a view to meeting
the growing demand for quality cotton from the quality conscious 100% export
oriented sector mills, the Corporation made a beginning in processing of
cotton with least contamination from 1997-98. The Corporation proposes
to increase processing of cotton with least contamination to meet the growing
demand of quality cotton in future years.
HANDICRAFTS & HANDLOOMS EXPORT CORPORATION(HHEC), NEW DELHI The Handicrafts &
Handlooms Export Corporation of India Limited (HHEC) was set up in June,
1962 with the twin objectives of (i) Export promotion, and (ii) Trade development
of handicrafts and Handloom products. HHEC is a trading house in the field
of handicrafts and Handloom products (including Handknotted woollen carpets
and ready made garments) besides undertaking export of Gold and Silver
Jewellery/Articles. In the year 1997-98, vide Government notification No.
80/97- Customs dated 21st October, 1997, HHEC along with other ten agencies
was nominated for import of bullion under OGL and sale in the domestic
market.In keeping with its plan for diversification HHEC also undertook
import of mulberry raw silk.
Turn Over The turn over of
the Corporation during the year 1998-99 amounted to Rs. 139.73 crores as
against Rs.318.28 crores (excluding Gold Jewellery exports through its
associates) during the corresponding period last year, which includes exports
to the extent of Rs. 84.25 crores (previous year export of Rs.87.20 crores).
Targets for 1999-2000 are at Rs.124.20 crores which includes export of
Rs.73 crores.
Working Results During the year 1998-99
the Gross Profit amounted to Rs.14.60 crores as against Rs.18.64 crores
during the corresponding period previous year. The over heads during the
year 1998-99 amounted to Rs. 18.90 crores(including fund for VRS Rs2.13crores)as
against Rs.20.15crores during the corresponding period previous year. The
year ended with a net profit Rs1.59 crores as against a net profit of Rs.
2.04 crores during the corresponding period previous year. The company
also again declared to pay the Government enhanced divident of 5% divident
amounting to Rs. 54.10 lakhs on the same line as previous year
Statistics The product-wise
break up of exports is given in table below.
Export Promotion and Trade Development The Corporation continued its export promotion and trade development activities during the year by developing new samples, engaging professional designers from India’s prime fashion technology institutes i.e. NIFT, including a foreign designer from Japan. Promotion of Indian handicrafts and handlooms products in foreign market through improved designs input for giving exposure to traditional Indian products in the world market by participating in a number of International fair like Heimtextil fair in USA and BSM, Osaka Fair at Tokyo for handlooms products and 19th Indian Garment Fair for Ready-to-Wear. The Corporation is
working to evolve projects for trade development in the area of superfine
fabric for dress material etc. at Konanyanagar, West Bengal, value added
dressware and home furnishing doing zari work etc. by setting up product
and design development centre at various places in the country and also
fabric development using natural dyes.
Achievement upto 3th DECEMBER, 1999 HHEC has achieved
turnover of Rs. 170.32 Crores upto December, 1999 which includes direct
exports of Rs.43.75 crores, domestic sales of Rs. 0.65 Crore, bullion imports
of Rs.30.11 crores and silk imports Rs. 91.18 Crores as against turnover
of Rs. 89.28 Crores during the corresponding period last year which includes
direct exports of Rs.31.97 cores, domestic sales of Rs.0.76 crores and
indirect exports of Rs. 41.95 Crores. The net profit upto December, 1999
is Rs. 2.60 Crore.
Mulberry Raw Silk Imports The import of Mulberry
Raw Silk has been canalised vide notification No. 18(RE-99)1997-2002 dated
8th July, 1999. Action has been initiated to place order for load (36 tons)
for stocking and distribution by NHDC. 27 tons has already been delivered
to NHDC. Further we have so far received indents and submitted the proposals
to DC(HL) for import of Mulberry Raw Silk valuing (CIF) Rs. 186.85 crores.
Indents valuing Rs.91.18 Crores have been executed upto 31.12.99 and the
balance for execution amounts to Rs.95.67 Crores.
Capital The authorised share
capital of HHEC remained Rs.20 Crores and paid up capital is Rs.10.82 Crores
as on 31st March, 1999.
NORTH EASTERN
HANDICRAFTS AND HANDLOOMS DEVELOPMENT CORPORATION (NEHHDC), GUWAHATI
INTRODUCTION The NEHHDC Ltd. was
established in 1977 as a regional nodal agency for the promotion and development
of handicrafts and handlooms in the region. The areas identified for undertaking
promotional and developmental activities included infrastructural and input
support for research, design development, training of craftsmen and weavers,
technical upgradation, supply of raw materials through appropriate budgetary
support. The Corporation was also required to market the products outside
the region and promote export.
ACTIVITIES The main activity of the Corporation is developmental covering different spheres mentioned above. Its secondary activity is related to marketing. Its marketing operation is being conducted through a network of emporia located in metropolitan and other cities. These emporia also organise and participate in a variety of exhibitions, Handlooms and Handicrafts Expos, N.E. Crafts Fair, etc. The Corporation has also been participating in I.I.T.F., other Trade Fairs, and Gifts Fairs, etc. on regular basis. Despite financial and operational constraints the Corporation successfully conducted 38 exhibitions. N.E. Crafts Fair,Chennai, Mumbai and IITF at New Delhi are being conducted from 25 october 1999 and 14th November 1998 respectively. The functioning of
the Dye House was stopped from 1st April, 1994 under the direction of the
Government of India. In February 1997, the Government further ordered winding
up of the Dye House and disposal of plant, machinery and other assets by
auction or leasing to other institution. However, complete winding up of
the Dye House has not been possible in absence of Government decisions
on the treatment of outstanding secured and unsecured loans availed in
the setting up of the Dye House. Due to closure of the Dye House the manpower
numbering 63 have been rendered idle. However Government has sanctioned
funds in March’ 98 for a Cane & Bamboo Common Facility Centre, which
will facilitate use of the Dye House building and also redeployment of
about 25 staff of the Dye House.The common facility centre is likely to
be commissioned by end February 2000. The authorised share capital of the
Corporation is s. 2 Crore which is fully paid up and subscribed by the
Government of India. The Corporation has submitted a proposal to enhance
the share capital to Rs.15 crore to accommodate enhanced equity capital
after the conversion of outstanding loans/interest into equity, grant or
write off proposal under the capital restructuring plan. The Corporation
has proposed to raise share capital from Rs. 2 Crore to Rs. 10 crores and
convert the entire Government loans into grant-in-aid.
PERFORMANCE The detailed financial performance over a period of five years from 1995-96 to Dec., 1999 is as followed: (Rs. in lakhs)
The net loss position is due to the following : a) Increased overheads particularly in salaries on account of revision of pay-scale b) Huge ‘Idle works force of dye-house. c) Distribution of
promotional 2 development reimbursement schemes.
CENTRAL COTTAGE INDUSTRIES CORPORATION OF INDIA(CCIC), NEW DELHI The Central Cottage Industries Emporium was established in Delhi in the year 1952 under the Management of the Indian Co-operative Union and was later on taken over by the Central Cottage Industries Association in 1964. The Central Cottage Industries Corporation of India was incorporated on 4.2.1976 as a wholly owned subsidiary of the Handicrafts and Handlooms Export Corporation of India Ltd. However, with effect from 27.3.1991, CCIC has ceased to be a subsidiary of HHEC of India Ltd. and has been brought under the under the administrative control of the Ministry of Textiles. The main object of the CCIC is to act as dealer, exporter, Manufacturer and agent of Indian quality Handicrafts and Handlooms and to develop Markets for these products in India and abroad. However, it also engages itself in export activities and is eligible export house. The Corporation has six showrooms viz; at Delhi, Calcutta, Mumbai, Bangalore and Secundrabad and Chennai. Besides this, the Corporation has its own production centre at NOIDA for manufacture of readymade garments and accessories. The production centre also has a printing unit where Sarees, fabrics etc. are printed. The authorised Capital of the Corporation is Rs.12.00 Crores and the paid up Capital is 10.85 Crores. The total sales of the Corporation for the financial year 1998-99 were of the order of Rs.5108.75 Lakhs as against Rs.4865.77 Lakhs during the year 1997-98. Thus during 1997-98, the sales were increase by 4.99% over the previous year. Cumulative sales during April-December, 1998 are anticipated to be around Rs. 4367 lakhs which are as per the target upto December, 1999. The Corporation has set for itself an ambitious target of turnover of Rs. 600 lakhs for the financial year 1999-2000. The net profit before Tax for the year 1999-2000 is anticipated to be around Rs. 212 lakhs. The Corporation continues
to strive for excellence in the field of its operations. To promote traditional
crafts of the country, the Corporation purchases bulk of the merchandise
directly from the artisans. The Corporation proposes to open more branches
in the major cities of India in future.
NATIONAL HANDLOOM DEVELOPMENT CORPORATION LTD.(NHDC), LUCKNOW National Handloom Development Corporation (NHDC) Ltd., Lucknow was set up in February, 1983 as a Public Sector Undertaking by the Government of India as an autonomous body under the Companies Act, 1956, in pursuance of the imperative need for a National Level Agency to assist the speedy development of the Handloom Sector by co-ordinating all action covering the procurement and supply of inputs at reasonable prices, augmenting the marketing efforts of the state handloom agencies and initiating development activities for upgrading the technology in the handloom sector and improving productivity. Main Objective of the Corporation are: 1) To carry on the business of all types of yarn for the benefit of the sector. 2) To organise supply of quality dyes and related materials needed by the handloom sector. 3) To promote marketing of handloom fabrics including exports. 4) To aid, assist and implement the projects connected with the production of handloom fabrics including taking up modernisation programme, introduction of appropriate technology for the handloom sector. The total authorised capital of NHDC Ltd., is Rs. 20.00 crores and its paid up capital is Rs. 16.00 crores upto 1999-2000. The turn over and
profit account of the Corporation for the last 3 years are as under:
During the year 1998-99, the Corporation declared dividend @ 20% of post tax profit and a Rs.15.00 lakhs was paid to the Govt. of India as dividend. The Corporation has shown improvement in its performance as compared to the last year’s performance. The NHDC has supplied yarn worth Rs. 16,928.32 lakhs during the year 1998-99 as against Rs.12902.30 lakhs worth of yarn supplied in 1997-98. Dyes and Chemicals with Rs. 1412.95 lakhs were supplied during 1998-99 as against Rs. 1240.54 lakhs during the previous year. 171.35 lakhs kgs. of yarn was supplied to user agencies while in the field of dyes and chemicals the supply was 7.85 lakhs kg. During the year 1999-2000
(Upto November, 1999) the Corporation supplied yarn of 121.93 lakhs kg.
worth Rs. 11,934.50 lakhs and 6.39 lakhs kg. of dyes and chemicals worth
Rs. 1,100.50 lakhs.
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