Asoka Spintex

Abstract

Asoka Spintex, formerly known as Asoka Mill Ltd., was set up in 1920, not doing well. Most of textile mills in the country were not doing well in the 1980s owing to rising costs, competition from powerlooms, and heavy demand recession. To meet this situation, the company decided to upgrade the technology and infrastructure, especially of the weaving mill. Loans were taken from some financial institutions and investments were made. The interest burden kept increasing, and finally, the company was registered as a sick industrial company with BIFR in 1990. The weaving and processing units were closed down in 1992 and barring workers belonging to the spinning unit, the rest were retrenched. A new GM was brought in to turnaround the company. Within 2-3 years, the company’s financial conditions started improving. However, it was thought difficult to prevent the company from closing down unless it merged with a profitable company. Finally, Asoka Spintex merged with another group company as a division. The division continued to do well and a few initiatives were being taken to sustain its growth.