National Jute Manufactures Corporation Limited

National Jute Manufactures Corporation Limited, commonly known as NJMC, was a central public sector undertaking of the Government of India and an industrial organization in the country's jute sector. Headquartered in Kolkata, West Bengal, it was established in 1980 under the Companies Act, 1956, after the government had taken over the management of six distressed jute mills under the Industries (Development and Regulation) Act, 1951. Its purpose was to consolidate and operate those mills, preserve industrial capacity, and maintain employment and production in a strategically important traditional industry. The original mill portfolio comprised Kinnison, Khardah, National, Alexandra and Union mills in West Bengal, together with the RBHM mill at Katihar in Bihar. Over time, NJMC's operating footprint narrowed. The corporation's principal operating units became Kinnison and Khardah in the North 24 Parganas area of West Bengal and RBHM at Katihar. It also had one subsidiary, Birds Jute and Export Limited. NJMC manufactured conventional and value-added jute goods. Its product range included B Twill sacking cloth, other sacks and packaging materials, floor mats, carpets, water-repellent geotextiles and smaller consumer-oriented articles such as tiffin bags, bottle bags, ring bags and three-fold purses. These products placed the organization across industrial packaging, agricultural and commercial materials, construction-related geotextiles and household or lifestyle goods. Jute's biodegradable and renewable characteristics also gave NJMC a potential position within the wider shift toward environmentally preferable materials. The corporation experienced prolonged financial and operational difficulties. It was referred to the Board for Industrial and Financial Reconstruction in 1992, with later descriptions of the case also citing 1993. A revival process was eventually approved by the Union Cabinet on 19 March 2010, and the BIFR approved a revival scheme on 31 March 2011. The plan supported the resumption of production at RBHM in January 2011 and the reopening of Kinnison and Khardah in September 2011. NJMC also pursued modernization, process improvements, production contracts in place of labor contracts, and new machinery, including spreaders and 4¾-inch SD spinning frames. The company reported that all three targeted operating mills had restarted production. Further restructuring efforts included consideration of alternative uses for surplus land and diversification into additional jute products. In 2013, NJMC moved to select a transaction adviser to develop a plan for surplus land utilization, while also examining opportunities connected with demand for green and eco-friendly products. These initiatives did not resolve the corporation's underlying financial problems. The operating mills were under suspension from August 2016, and the Union Cabinet approved closure of NJMC and its subsidiary Birds Jute and Export Limited at a meeting on 10 October 2018. NJMC is therefore best classified as a defunct former state-owned jute manufacturing enterprise rather than an active consumer brand.

NJMC was created in 1980 as a central government company under the Companies Act, 1956. Its formation followed the government's takeover of the management of six jute mills under the Industries (Development and Regulation) Act, 1951. The enterprise was intended to provide an institutional framework for operating the nationalized mills and maintaining production in a sector that was important to eastern India's industrial economy and employment base. The six mills assigned to NJMC were Kinnison, Khardah, National, Alexandra and Union in West Bengal, and RBHM at Katihar in Bihar. NJMC was placed under the administrative control of the Ministry of Textiles. Its headquarters were in Kolkata. The company's later operating structure centered on three mills: Kinnison and Khardah in the North 24 Parganas area of West Bengal and RBHM in Katihar, Bihar. The corporation also maintained a subsidiary, Birds Jute and Export Limited. NJMC's business covered the manufacture of jute goods for industrial, agricultural, construction and consumer uses. Its catalog included B Twill sacking cloth, sacks and related packaging products, water-repellent geotextiles, mats and carpets, as well as smaller articles such as tiffin bags, bottle bags, ring bags and three-fold purses. The range reflected both the traditional role of jute in packaging and the possibility of developing higher-value products based on a renewable and biodegradable fiber. Financial weakness became a defining feature of the company's later history. NJMC was referred to the Board for Industrial and Financial Reconstruction in August 1992, although later accounts of the case also describe the reference as dating from 1993. The organization remained under financial pressure for many years. A formal revival decision was approved by the Union Cabinet on 19 March 2010, and the BIFR approved the revival scheme on 31 March 2011. The revival program sought to restore production and modernize the remaining mills. Operations resumed at RBHM in January 2011, while Kinnison and Khardah reopened in September of the same year. NJMC introduced or considered modernization measures, innovation in spinning operations, production contracts in place of labor contracts, and the acquisition of newer machinery such as spreaders and 4¾-inch SD spinning frames. It also explored the use of surplus land and diversification into jute products that could benefit from the global interest in green and eco-friendly materials. By the account summarized in the reference material, all three selected operating mills had restarted production during the revival period. The recovery was not sustained. The mills identified for revival were under suspension from August 2016, and the corporation continued to face losses. On 10 October 2018, the Union Cabinet approved the closure of NJMC together with Birds Jute and Export Limited. This decision ended the corporation's role as an operating government jute manufacturer. NJMC is consequently a former Indian public-sector industrial enterprise whose history runs from nationalization and state stewardship through attempted financial reconstruction, modernization and eventual closure.

1. 2018Closure is approved

   The Union Cabinet approves closure of NJMC and its subsidiary Birds Jute and Export Limited.

   Source
2. 2016Revival mills enter suspension

   The Kinnison, Khardah and RBHM mills proposed for revival are reported as being under suspension from August.

   Source
3. 2013Surplus-land and diversification planning

   NJMC seeks a transaction adviser for surplus-land utilization and considers broader jute-product diversification.

   Source
4. 2011BIFR approves revival scheme

   The Board for Industrial and Financial Reconstruction approves the company's revival scheme.

   Source
5. 2011Selected mills restart

   RBHM resumes production in January, followed by Kinnison and Khardah in September.

   Source
6. 2010Government approves revival plan

   The Union Cabinet approves a plan to revive NJMC after its prolonged financial difficulties.

   Source
7. 1992Financial reconstruction proceedings begin

   NJMC is referred to the Board for Industrial and Financial Reconstruction because of continuing financial losses.

   Source
8. 1980NJMC is incorporated

   National Jute Manufactures Corporation is incorporated under the Companies Act, 1956, to operate six jute mills taken over by the Government of India.

   Source

A government-owned industrial jute producer focused on operating nationalized mills, supplying packaging and technical jute products, and supporting employment and domestic manufacturing in India's traditional jute sector.

• B Twill sacking clothIndustrial jute packaging

  A woven jute packaging material associated with bulk handling and storage applications. It represented NJMC's traditional industrial role in supplying jute-based materials for commercial and agricultural use.

• Jute geotextilesTechnical textiles

  NJMC produced water-repellent jute geotextile products, extending the company's range beyond conventional sacks and cloth into technical applications associated with soil, land and construction management.

• Jute mats and carpetsHome textiles

  Floor mats and carpets formed part of NJMC's broader jute-goods portfolio. These products translated the fiber's durability and natural appearance into household and furnishing applications.

• Jute lifestyle bags and accessoriesConsumer jute goods

  The company's listed consumer-oriented items included tiffin bags, bottle bags, ring bags and three-fold purses. They reflected efforts to diversify toward smaller, value-added products in addition to industrial packaging.

• 2018Closure of NJMC and Birds Jute and Export LimitedOther

  NJMC continued to incur losses, and the mills proposed for revival had been suspended since August 2016.

  What changed. The Union Cabinet approved closure of NJMC together with its subsidiary Birds Jute and Export Limited.

  Aftermath. NJMC ceased to be an operating government jute manufacturer and its product portfolio became discontinued.

  Source
• 2013Surplus-land utilization and product diversificationStrategy

  NJMC sought additional ways to use its assets and respond to interest in environmentally preferable products.

  What changed. The company decided to select a transaction adviser for an alternative surplus-land plan and considered diversification of its jute-product range.

  Aftermath. The initiative did not prevent the later suspension of the mills or the approval of NJMC's closure.

  Source
• 2011Modernization and production-system changesGeneration change

  The revival program required NJMC to improve the productivity and technical capacity of its remaining mills.

  What changed. The company pursued modernization, machinery procurement, spinning-frame improvements and the use of production contracts in place of labor contracts.

  Aftermath. The three selected mills restarted production during the revival period, although later suspension and continuing losses led to closure.

  Source
• 2010Government-backed revival of NJMCStrategy

  NJMC had experienced prolonged losses and had been subject to industrial and financial reconstruction proceedings.

  What changed. The Union Cabinet approved a revival plan, later followed by approval of the revival scheme by the BIFR.

  Aftermath. The plan enabled the reopening of RBHM, Kinnison and Khardah and supported modernization measures, but the recovery was not sustained.

  Source

• 2018Union Cabinet approves closure of NJMC and subsidiary

  The Union Cabinet approved closure of National Jute Manufactures Corporation and Birds Jute and Export Limited after years of losses. The mills proposed for revival had been under suspension since August 2016.

  BankruptcyOther
  Source
• 2013NJMC considers surplus-land utilization and product diversification

  NJMC began the process of selecting a transaction adviser to develop an alternative plan for surplus land and examined diversification into jute products aligned with demand for environmentally preferable materials.

  Other
  Source
• 2011Revival scheme receives BIFR approval

  The Board for Industrial and Financial Reconstruction approved NJMC's revival scheme, supporting the restoration of production at selected mills.

  Other
  Source
• 2011RBHM, Kinnison and Khardah mills resume operations

  Production resumed at the RBHM unit in January, followed by the reopening of Kinnison and Khardah mills in September as part of the government-backed revival effort.

  OtherProduct generation
  Source
• 2010Union Cabinet approves revival of NJMC

  The Union Cabinet approved a revival plan for NJMC after the corporation's prolonged financial distress and referral to the industrial reconstruction process.

  Other
  Source
• 1992NJMC referred for industrial and financial reconstruction

  National Jute Manufactures Corporation was referred to the Board for Industrial and Financial Reconstruction after sustained financial losses and operational difficulties.

  BankruptcyOther
  Source

1. National Jute Manufactures Corporation Limited