| "We achieved a turnover of Rs 72 crore in 2004-05, and expect to register close to Rs 80-crore turnover this fiscal. If the workers support the management, the turnover may go up even further," Jagadish Sarda, managing director of Nellimarla Jute Mills Company, and vice-chairman of Indian Jute Manufacturers Association, told Business Standard. |
| The company earned an operational profit of about Rs 4 crore during last fiscal. "We expect some surplus this year too, but due to accumulated losses, the company will be in the red for a few more years," he added. |
| Due to accumulated losses to the tune of about Rs 25 crore, Nellimarla Jute Mills was referred to the Board for Industrial and Financial Reconstruction (BIFR) a few years back. |
| "Our plant's present installed capacity is 120 tonnes per day, which is the largest in the state. But currently, our production does not cross 75-80 tonnes a day because of the workers' problem," Sarda informed. |
| "We have 5,000 workers in Nellimarla Jute Mills, and are paying them the highest wages when compared to other jute mills in the state. In spite of this, the workers' unions are not cooperating with the management. The state labour department too is not taking appropriate measures to tackle the situation. Owing to these reasons, our unit has been suffering losses for the last five years," he said. |
| Sarda feared that many jute mill operators from West Bengal may think twice before setting up their units in the state. |
| "Despite good infrastructure facilities, investor-friendly policies, and availability of cheap labour and raw material in the state, jute mill operators from West Bengal may not move to Andhra Pradesh if the labour problems like this continue to plague the industry, " he pointed out. |
| The state government should seriously think about introducing investor-friendly labour laws, he said. |
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