Rajapalayam Mills Ltd. (RML), a Ramco Group company, has decided to merge its spinning mill in Andhra Pradesh (A.P.) with its mother plant in Rajapalayam in Tamil Nadu, said a top official.
“The board of directors have decided to shift a majority of the machines installed in A.P. with its parent unit for better control over operation and costs,” said Gnanagurusamy, chief financial officer, RML. “The entire exercise is expected to be completed over the next two months.”
RML has a total installed capacity of about 1.38 lakh spindles and 5,480 rotors, of which 4,800 spindles and 1,800 rotors are in A.P.
“As of March 31, 2019, the AP unit generated a revenue of ₹38.43 crore and this constituted 9% of RML’s total revenue. There will not be any reduction of revenue or profits since majority of the machinery is being shifted to the parent unit at Rajapalayam,” he said.
After shifting the machinery, RML would initiate the process of selling the residual machines, land and building in the A.P. unit.
The board reappointed R. Sudarsanam (77) as managing director for a period of three years from April 2020 to March 2023, subject to the approval of shareholders. She is a promoter and managing director and has been on RML’s board since 1996, said a company statement.
RML has reported a loss of ₹15 lakh in its standalone results for the fourth quarter ended March 2019 against a profit of ₹38 lakh reported year earlier, due to taxation. Total revenue rose to ₹120.56 crore from ₹112.37 crore. The board declared a dividend of ₹4 per share.
