Companies

Lakshmi Mills to enter new businesses

S. Pathy.  

Century-old Coimbatore-based textile icon Lakshmi Mills Company will make a foray into realty and health care sectors.

Talking to presspersons here on Monday, Company Chairman and Managing Director S. Pathy said this “could be and would be a big money spinner.'' This would be a big bonus because the company had considerable land bank including right at the heart of Coimbatore city. “The decision is a little late, mainly because we thought it would hurt the sentiment of my father (the late G. K. Sundaram).But when he himself said at a board meeting “if you keep spinning yarn on the Avinashi road, how can your profitability be better?” So it was under his direction that the Coimbatore unit was relocated. “Hereafter textiles alone would not be the only vertical of Lakshmi Mills. We should be able to enter the realty sector within 24 months,” he said.

Though Mr. Pathy would not like to reveal the total land bank the company had, all that he would say was that it was common in olden days to locate industrial units in underdeveloped regions so that there could be housing for the workers and school for their children. Now all these places had become developed and such facilities were no more required.

He pointed out that a lot of textile units, which were located in the heart of cities, “do not find it interesting to run textile mills there. The property could be put to much more profitable use.''

Hence, “we have applied for land conversion. We are in dialogue with various companies and are in the process of trying to get a final correct project mix we want in this development — office space, malls and residential).''

Asked whether it would be a joint venture, Mr. Pathy said, “we are in touch with a couple of Indian companies and are at the initial stage of having discussions with a Singapore-based company.''

The company also proposed to enter the health care sector through its ‘silver fibre'.

At present it is imported from the U.S. This would have anti-bacterial properties. Samples are in the process of trials in the group hospital. “We are trying out samples of socks with silver fibre for fighting odour with anti-bacterial properties.''

He admitted that this would be a product which could be expensive but used in intensive care and the neonatal area.

He said he would not be able to say anything regarding the volumes as it would be too premature. However, it would not involve any investment. On the timeframe, he said it could take about five months. “We have not named it but will brand it,'' he said.




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Printable version | Jun 13, 2021 6:58:30 AM | https://www.thehindu.com/business/companies/Lakshmi-Mills-to-enter-new-businesses/article16010248.ece

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