The Hindu Business Line : Modern Mills to focus on diversification

It has already made a start by launching the Indian Institute of Jewellery, simultaneously entering into a technical collaboration agreement with the California Institute for Jewellery Training. For this, it has identified a building on its property that fits the requirements of the centre and is being renovated.

However, the company is not giving up on its interests in the yarn and textile industry, which it considers its strengths. It was forced to close its unit in Mahalaxmi, Mumbai, in February, laying off 60 workers. The company said that there is a possibility that it would takeover another unit and continue with its textile activities.

Mr V.K. Jatia, Managing Director, Modern Mills Ltd, said: "While the company has no interest in setting up a greenfield project, we may take over an existing unit. We may consider taking over such a unit in Coimbatore, Sholapur or Kolhapur."

While the company's operations sustained losses over a period, and only lately registering profits, it still outsources its requirements to meet customer needs. This year, however, it has not had any export orders.

Mr Jatia attributed the plant's closure to the high cost of labour in Mumbai, high raw material costs, municipal and water taxes and the withdrawal of certain sales tax benefits.

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