Bombay Dyeing, which received shareholders' approval for selling its Roha and Jamnagar spinning units, may have decided to close the unit due to absence of a suitable buyer, industry sources said. Bombay Dyeing officials were not available for comment.

However, the company in a letter to Bombay Stock Exchange said it has made application to the Gujarat government for closing down operations at the Jamnagar Spinning unit by March 2000.

It is believed that the company had been in negotiations with a few textile companies for the sale of the unit but could not clinch the deal because it was asking for a much higher price.

The decision to sell the units was part of an overall restructuring exercise. The broader plan, which is likely to include a complete overhaul of its operations, is to reposition Bombay Dyeing as a textiles monolith with focus on readymades and furnishings. The company has already chalked out a strategy for a four-fold increase in the readymade garments business.The UK-based Warwick University, which had earlier been engaged to work out a recast plan for the textiles business, has also suggested that Bombay Dyeing should stick to the core competence of textiles, sources said.

Bombay Dyeing has initiated several steps to strengthen its core textiles business. While the readymade garments business, with strong brands like Vivaldi, contributed less than five per cent to the total turnover of Rs 861 crore, efforts are being taken to increase the contribution at least four-fold over the next three years.

The company has also launched a couple of new brands like Princeton and Forest Hills as part of the same effort. Subsequently, additional thrust will also be given towards marketing of readymades and furnishings products through the company-owned 600-plus retail network countrywide.

The company may hive off its off its loss-making di-methyl terephthalate division, primarily responsible eroding the company's blue-chip status over the years. It is learnt that Bombay Dyeing will consider the option of either roping in a joint venture partner for the new DMT company or divesting from the business altogether, if the division is eventually spun-off.