National Jute Manufactures Corporation Limited
|Founded||Kolkata, India (June 3, 1980 )|
|Founder||Government of India|
|Mr. Subrata Kumar Gupta (CMD)|
|Revenue||600.00 crore (US$94 million)|
|Subsidiaries||Birds Jute and Export|
National Jute Manufacturers Corporation Ltd.(NJMC) is a Public Sector Undertaking (PSU) of the Government of India and is headquartered in Kolkata, West Bengal. It was incorporated under the Indian Companies Act, 1956 with an objective to takeover six jute mills, the management of which was earlier taken over by the Govt. of India under the Industries (Development and Regulation) Act, 1951. NJMC is engaged in manufacturing of jute goods through its six units at North North 24 Paragnas, Howrah and Kolkata in West Bengal and Katihar in Bihar. It has one subsidiary namely Birds Jute and Export. After years of losses, the company became almost inoperable in 2002. A revival scheme was launched in 2010, that led to reopening of the factories in 2012 after financial restructuring.
Prior to 1980, jute industry in India was mostly private and outside Government purview. This lead to widespread grievances by the working class against the mill owners. The Government of India enacted the Industries (Development and Regulation) Act in 1951 which facilitated state accession of private factories all over the country. Subsequently, six companies, five in West Bengal and one in Bihaar were nationalized under the National Company Limited (Acquisition and transfer of Undertakings) Ordinance, 1980 and the Jute Companies (Nationalisation) Act, 1980 respectively. National Jute Manufactures Corporation Limited (NJMC) was registered under the Company’s Act 1956 in June 1980. The undertakings of 6 nationalized units viz. Khardah, Kinnison, Alexandra, Union, National and RBHM was vested in NJMC - National with effect from June 1980 and others (Alexandra, Union, Khardah, Kinnison and RBHM) with effect from December 1980.
The six mills under the NJMC are as follows:
- National Company Limited
- Alexandra Jute Mills Limited
- Union Jute Company Limited
- Khardah Company Limited
- The Kinnison Jute Mills Company Limited
- RBHM Jute Mills Pvt. Limited
Jute products are diverse, from gunny bags to home decor. Some examples include, B Twill sacking cloth, water repellent geo-textiles, floor mats, carpets etc.
Financial Losses and Restructuring
NJMC had been suffering cash loss since its inception. 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 11 August 1992. Thereafter, BIFR declared the Company as 'sick' under the provisions of Sick Industrial Companies (Special Provision) Act, 1985(SICA). Time and again various revival proposals were submitted to BIFR which were turned down due to promoters (GOI) unwillingness. In 2004, the BIFR recommended liquidating the company. This decision was upheld by the Calcutta High Court. However, due to agitation by the employees of the company, the case was reopened in 2008 and a revival plan was submitted in 2008. In 2010, the Union Cabinet accepted the revival plan. The revival scheme was prepared by IDBI and had been recommended by BRPSE. It was proposed to operate 3 Units of NJMC Ltd. viz; Khardah, Kinnision and RBHM through Public Private Partnership. NJMC is a schedule "B" BIFR referred CPSE under the administrative control of Ministry of Textiles. Mass voluntary retirement scheme was provided to all sections of the employees.