Alok Industries forms joint venture with NTC to convert 2 mills to garment units

Mumbai: Textile firm Alok Industries Ltd has formed joint venture with state-run National Textile Corporation to convert two of its struggling spinning mills into garment units, as part of a revival plan. Alok has formed two joint ventures with NTC to revive a mill each in Mumbai and Aurangabad to set up garment units with a capacity of 500 machines, sources said. "We have submitted the plan. The joint venture firm''s board needs to take a decision," said an official who refused to be quoted. "Spinning operations will be unviable due to high costs in Mumbai and strict pollution regulations do not allow processing." NTC will own 51 per cent and Alok the rest in the joint venture firm, the official said adding investment numbers would be arrived at shortly. The mills have about 500 workers each and the garment unit can absorb them, the official said. NTC had invited bids from top private textile firms to revive a clutch of them. Besides Alok, the Future group, which runs Pantaloon Retail (India) Ltd has won the rights to revive two mills in Mumbai and Bhaskar Industries another one, a National Textile Corp source said.