The five-year loan, it is believed, has been raised at a reasonable rate, although the company refused to divulge the exact figure. The money will go towards adding some looms and modernising older machines at Morarjee Mills, the country's fourth-largest composite textile mill with facilities for weaving, spinning and finishing (including dyeing and printing).

The loan has been raised after substantial efforts by the Piramals at turning around the company, largely using the group's expertise in implementing successful joint ventures.

The Mumbai-based Morarjee Goculdas has entered into three 50:50 joint ventures with Italian firms: Morarjee Brembana Ltd (with Manifatture di Valle Brembana) which markets high-quality shirting fabric made by MorarjeeGoculdas; Morarjee Castiglioni India (with Manifattura Castiglioni) for home furnishing marketing; and Morarjee Legler (with Legler Industria Tessile). These tieups have brought technology and marketing benefits which have helped the company push exports to 3 per cent of turnover (the target percentage is between 10 to 15). In India, the company supplies to major branders like Madura, Zodiac, Park Avenue and Goculdas Exports.

The management, led by managing director Pramod K Gothi, has also implemented an elaborate rehaul of the processes and systems in use at the 128-year old company.

"The group has proved its strength in partnerships in the past, in fields as diverse as pharmaceuticals, engineering and textiles," Gothi told The Financial Express. "This is why it chose to use the joint venture route to revamp the company's technology, processes and product line."

The company, which ran up a net loss of Rs 5.88 crore for the year ended June 30, 1998, has also used a thorough overhauling of theprocess house to bolster its performance. "Our process house from here on is going to operate at international quality, thanks to our in-house expertise, external advice from McKinsey & Co last year, and active, hands-on support from our collaborators."

Apart from the process house revamp, the company also undertook a vital business restructuring decision earlier in June when it closed down a process house in Davangere, Maharashtra and offered a voluntary retirement scheme to 400 employees. Productivity increased dramatically, says Gothi. At the same time, the company upgraded the printing and processing facilities at Mumbai.

The company's product range has also begun to change subtly, in response to market needs, says Gothi. He said over time, spinning, which earlier used to contribute more to the turnover, has come to contribute only about five per cent to the company's turnover, and this will decrease even more.

Instead, the accent is on value-added products to the range, of which home furnishings isalready a major thrust area. In this segment, Morarjee Castiglioni markets the products made by Morarjee Goculdas.