Outlook. There is an expectation of Bumper raw jute crop which will arrive in the market from July/Aug onwards because the farmers have gone for higher acreage of jute cultivation this year due to record high prices realised by them for the previous crop & with expected above normal monsoon, Government procurement Agencies have also projected higher B Twill bags requirements. Considering the above factors it is hoped that performance of Jute Industry including your Company may be better this year, barring unforeseen situation. Your Company after having sold its Anglo India Jute (Middle Mill) located at Jagatdal, Dist. 24 Parganas (North), West Bengal w.e.f 01.05.2016 is now planning to focus more and more on value added products and also ramping up production at its other Units. Since AIJM – Middle Mill was highly labour intensive having very low productivity, manufacturing mostly conventional products, its hiving off should result in overall improvement in the operating performance of the Company. Sales turnover may be lower initially but may gradually increase with the Company’s efforts in enhancing production at other Units in a phased manner. Efforts are continuing to resume operations at Wellington Jute Mill and other Units located at Rishra, Dist- Hooghly, West Bengal which are currently under temporary suspension of work due to acute shortage of raw jute and low productivity. Resumption of operations at these Units also depends upon the outcome of negotiations underway with the Workers Unions to benchmark productivity levels at these Units to Industry standards which at present is very poor when compared with Industry norms.
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Sources: Annual Report, Annual Report