Century Textiles to develop properties for retailing

Mumbai, Dec 13 (UNI) Century Textiles&Industries today announced that its Mumbai mill operations have become ''almost stagnant'' after 6,300 of the 6,600 workers opted for voluntary retirement scheme (VRS).

Informing the BSE, the company, however, did not specify what it intends to do with its land and building in Mumbai. While Century officials could not be reached, brokers maintain that the company plans to develop the property for its retailing venture.

Meanwhile, Mumbai textile mills have relocated to other centres to cut costs and have cashed in on the soaring realty prices by developing the properties.

Century, which has said, its Mumbai unit suffers from high labour costs, taxes and water charges, has been cutting capacity for the last few years.

In May, the company said it would further reduce yarn spinning capacity. The reduction has been progressive; from about 95,000 in 2004/05 to 77,000 spindles now. Weaving capacity too has been slashed to 500 looms from 1,200.

Century, which also makes cement and paper, has plans to start an integrated textile mill in Gujarat.

UNI SN PM AG1738