City-based Lakshmi Automatic Loom Works (LAL) plans to manufacture shuttleless looms at its Pollachi plant, and is looking at collaboration with an overseas machinery manufacturer for the same.
Lower demandCompany Chief Executive Officer A. Doraiswamy told The Hindu here on Friday that LAL was into manufacture of high speed shuttle looms. However, with the thrust on shuttleless looms, the demand for shuttle looms dropped, and there was lack of sustained orders from the user industry. Based on its 2001 balance sheet, the company was referred to the Board for Industrial and Financial Reconstruction (BIFR) and implemented a restructuring scheme, sanctioned by the BIFR, between 2001 and 2010.
Suspending operationsThe company manufactured shuttle looms till 2011-12. There was no production of looms at its plants since then due to paucity of orders. However, LAL continued to make spares and accessories. It informed the BSE on Thursday that it was suspending operations at the weaving machinery division at Hosur with immediate effect.
Mr. Doraiswamy said the company had been talking to overseas companies for manufacture of shuttleless looms, and details of the collaboration were expected to be finalised by the end of this financial year.
