J&K Industries Ltd (JKIL) which started its operation in 1963 was running 15 units in the sectors of manufacturing, textiles, woolen fabrics, leather and wooden goods. However after the private outlets selling fabrics by the companies from outside the state increased in number, the state’s oldest company had to shrink its business. It had to shutdown 11 of its units and now the accumulated losses of the PSU have gone upto Rs 450 crore.
By Fayaz Rasool
The Jammu and Kashmir Industries Ltd (JKIL) whose accumulated losses have piled upto Rs 450 crore has submitted a revival plan to the state government under which it has sought the upgradation of the infrastructure of its manufacturing units.
Managing Director of the JKIL, Javed Iqbal told The Legitimate, “We have submitted a package to the state government to upgrade the machinery of our manufacturing units. So far as our joinery mills are concerned we have upgraded the infrastructure. But due to the floods the machinery at Raj Bagh silk factory and the Bemina woolen mills was damaged which we are trying to upgrade.’’
J&K Industries Ltd (JKIL) which started its operation in 1963 was running 15 units in the sectors of manufacturing, textiles, woolen fabrics, leather and wooden goods. However after the private outlets selling fabrics by the companies from outside the state increased in number, the state’s oldest company had to shrink its business. It had to shutdown 11 of its units and now the accumulated losses of the PSU have gone upto Rs 450 crore.
The production at its 4-functional units has now fallen drastically over the years. As per the government figures the production of the goods has come down from Rs 33 crore in financial year 2002-03 to Rs 11 crore in 2010-11 and the sales.
Iqbal however said that the company has bounced back and like other business units in the state is only reeling under the effect of the flood and it has made strides in not only its marketing make-over but in replacing the obsolete machinery.
Government reports about the financial health of the company had noted that the “losses were due to surplus staff as well as the obsolete machinery and lack of technical expertise.”
However, Iqbal, said, “We have already brought down our annual loss by 24 crore from near Rs 30 crore that we footed some 5- years back. We could have reached break-even point last year, but the floods damaged our machinery and cut down the demand for the products. Our machinery at the Rajbagh silk factory and the Bemina woollen mills was badly hit.
“Our operational manufacturing units give us the profits. But we are also keeping the staff deployed like the watch and ward staff at the defunct units which is responsible for the losses.”
He said that the JKIL is living upto its promise of creating the jobs for the people in Kashmir, when the region is facing unemployment.
He referred to the motto of the company which was started as a social obligation and to provide jobs in a state which lacked in the avenues of employment. Like other PSUs, it was created mainly to provide jobs and not to worry about the profits.
But now the JKIL MD said that the strategy is focused to increase profitability and ensure employment to the local youth. “Our emphasis is on profitability and to increase the sales. We are pushing up the sales through better designs and delivering high quality products.”
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The story first appeared in print edition of April 6.
