No More Lakshmi Mills At Papanaickenpalayam
Lakshmi Mills, the oldest textile yarn and cloth manufacturer in Coimbatore, has stopped production at its Papanaickenpalayam unit in the city. It has shifted the machinery to the other two units at Palladam and Kovilpatti. It is to tide over the high cost of operation and manage the current recession.Company informed BSE on Monday in view of the conditions of the machinery, the unit stopped production from December 18 and a voluntary retirement scheme has been given effect. A top official said, “ Employees can either move to Kovilpatti or Palladam units or opt for VRS”. He said it has to close operations in Coimbatore due to the power crisis , the high overhead cost in the city and the prevailing critical condition in the industry. Earlier, in 2002, the company had closed its two mills at Singanallur in Coimbatore.
The official said the company would retain the Papanaickenpalayam property and the board would decide on its future course. The installed capacity of the unit was 31968 spindles and 114 looms. Comparatively, the Palladam and Kovilpatti units have modernised spindles and better facilities. The Palladam unit has an installed capacity of 56112 spindles of which 46608 spindles are fully modernised. The Kovilpatti unit’s total installed spindlage of 62928 are running on polyester cotton. The company started in 1910 is set to enter its 100th year in 2009, the first textile mill in South India to achieve the milestone.
