From Textiles to Electronics

From Textiles to Electronics Hansavivek JAGATJIT COTTON TEXTILE MILLS (JCT) is diversifying into manufacture of polyester staple fibre and colour picture tubes through joint sector companies, in both of which it is participating in the equity capital to the extent of 24 per cent. The polyester project is being implemented in association with Punjab Polyfibres, which has recently received a letter of intent increasing the capacity from 15,000 tonnes to 30,000 tonnes per annum. The project is expected to go on stream by the end of 1987. The directors feel that with the recent substantial reduction in excise duty, the polyester fibre industry will experience a large growth in demand. JCT has entered into a collaboration agreement with Punjab State Industrial Development Corporation for setting up a colour picture tubes project in Punjab for which a letter of intent was issued to Punjab Display Devices, a wholly- owned subsidiary of PSIDC in 1982. The project envisages production of five lakh colour picture tubes per annum. Negotiations are in an advanced stage with Hitachi of Japan. The company currently manufactures picture tubes for black and white TV receivers. Efforts are being made to improve the profitability of the unit by increasing the level of production from the present one lakh to six lakh picture tubes per annum. The directors say in their report that within the limits that might be set by the authorities they would make every possible effort to secure for the shareholders and fixed deposit holders of the company a preferred position to participate in the equity capital of both these projects.