Mumbai, July 15: The Rs 1,200-crore Forbes group, part of the Tata companies, has decided to gradually move out of the loss-making fabric business and concentrate on export of industrial yarns. The group is also drawing up a voluntary retirement scheme (VRS) to achieve cost-efficiency.These measures are part of the drive to improve performance of non-profit making units and attain greater synergies in shipping.

The group is in talks with major overseas players for joining hands to revive its garment-making unit, Cambell Knitwear, which slipped into the red due to high interest cost and depreciation. Cambell Knitwear, a subsidiary of the group company Forbes Gokak, incurred a loss of Rs 4 crore during 1996-97. Forbes will soon initiate a modernisation drive at its textile plants at Gokak, Karnataka.

Forbes has merged the activities of its shipping companies, Patvolk and Forbes Shipping Corporation, to give a greater focus to the business. Forbes has strengthened ties with overseas liners such as Orient Overseas Container Lines Corporation (OOCL), Hoeghline and LLoyd Triestiner after its 20-year alliance with Dutch-liner Nedlloyd Corporation broke off last year.

Forbes was the sole shipping agent for Netloyd, and is negotiating for a compensatory settlement, sources say. The group has also decided to set up internal container depots in Kanpur and Varanasi.Efforts are on to implement a VRS scheme shortly, but Forbes is also considering increasing turnover without reducing the workforce, sources say.

In keeping with the new strategy, the group companies, AP Industrial Components and Fal Industries, plan to introduce new products. AP Industrial Components is developing a water purification system for big industrial establishments on the lines of Aquaguard.

Fal Industries will double the capacity for producing fractional horsepower metres from 0.5 million tonnes per annum to 1 million tonnes. The company will soon introduce plastic injection moulding systems.

It will also increase production of manual typewriters for which demand is growing. However, the group's foray into health products segment has been put on hold for the present. Forbes has initiated various productivity improvement programmes in all its companies, among which is a shop-floor management plan. Exports will be the major thrust for the group, which already has a sizable presence in Latin America, Australia and New Zealand.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.