Pakistani Tatas are consolidating. But who are they and what do they do?

-

Who are the board of directors of Tata Textile Mills? Why, it is Mazar Valjee, Shahid Anwar Tata, Adeel Shahid Tata, Bilal Shaid Tata, and Farooq Advani (among others). And who are the board of directors of Island Textile Mills? What do you know: it is Mazar Valjee, Shahid Anwar Tata, Adeel Shahid Tata, Bilal Shaid Tata, and Farooq Advani (among others) again. The board of directors for Salfi Textile Mills? You guessed it. And the board of directors for Tata Energy? Ditto. 

If these revolving faces sound a little silly to you, it definitely sounded more than odd to the directors of the four companies. While all four companies are under the umbrella of the textile group Tata Pakistan, it seemed more prudent to have some sort of merger take place.

(One, semi-obvious, note: the Tata Pakistan industrial conglomerate has nothing to do with the much larger Mumbai-based global conglomerate that has a similar name.)

Which is exactly what the board decided on April 1, 2020. According to a notice issued to the Pakistan Stock Exchange on September 1, Island Textile Mills is to hold an extraordinary general meeting on September 24. Along with all of its respective assets and liabilities, the company is to be amalgamated into Tata Textile Mills. This will result in the ‘dissolution without winding up’ [this phrase is key], of Island Textile Mills. 

Not only will Island Textile Mills ‘dissolve without winding up’, but so will Salfi Textile Mills, and Tata Energy. All will become a part of the company Tata Textile Mills. 

Tata Textile Mills will issue to all the shareholders of Island, 15,100,000 fully paid-up ordinary Tata Textile shares of Rs 10, in the ratio of 30.2 Tata Textile shares for each Island share. Similarly, the mills will issue to all the shareholders of Salfi Textile Mills, 17,381,364 fully paid-up ordinary Tata Textile shares of Rs 10, in the ratio of 5.2 Tata Textile shares for each Salfi share. Finally, Tata Textile Mills will issue to all the shareholders of Tata Energy, 6,187,500 fully paid-up ordinary Tata Textile shares of Rs 10, in the ratio of six Tata Textile shares for each Tata Energy share. 

So, what are these Tata companies?

Of the four companies, Salfi Textile Mills is actually the oldest. It was incorporated in January 1968, and it manufactures and sells yarn. Its facilities are located at Landhi in Karachi. It was renovated in 2005, and boasts 36,708 spindles as of 2019. 

Then, there is the other spinning company, Island Textile Mills. This was established in 1970, but taken over by Tata Pakistan in 1981. Its facilities are located at Kotri Industrial Estate, close to Karachi. A second unit was built for the mill in 2015. The company now has 44,984 spindles as of 2019. 

Tata Energy was incorporated in 1994. This company has only one purpose: provide electricity to the two mills mentioned above. The first power generation plant was installed at Landhi in 1995, and the second was installed at Kotri in 1998. Tata Energy has invested around Rs775 million in this sector, and the annual power generation capacity at both locations is more than 10 megawatts.

In case that was not enough textile mills for Tata, the company also owns Tata Textile Mills, another spinning facility this time in Muzaffargarh in Punjab. It was incorporated in 1987, and has 44,000 spindles for manufacturing cotton yarn as of 2019. 

Of the three spinning mills, Tata Textile Mills made a loss only in one year (2016) between the years 2014 and 2019. Salfi Textiles recorded a loss in three of those six years, while Island Mills recorded a loss in two of those six years. In 2019, Tata Textile Mills made a profit after tax of Rs32 million in 2019, while Island Mills made a profit of Rs185 million, and Salfo made a loss of Rs86 million respectively. 

In making this decision to merge, the board of directors said they had three reasons, with the ‘ultimate aim of maximising shareholder returns’. 

First, the amalgamation of companies would allow for a reduction in costs associated with doing business, particularly legal and tax advisory costs. Second, the companies will be able to minimise the resources required to devote to the business of managing the shares held by each (four companies, four annual reports and financial statements, four annual general meetings – it adds up). 

“These two factors taken together will allow the surviving entity to maximise dividend distribution for its shareholders,” said the directors. 

Third, the larger size of the final company would increase the risk absorption capacity, “thus enhancing its capacity to manage the potential risks arising out of the adverse and uncertain operating environment.” 

In the long run, the board of directors said it would lead to greater stability, cost reduction, increase of the surviving entities’ international and local competitiveness, and sustainable operations.

The move comes amidst a wave of corporate consolidation in the textile industry. Just a few weeks ago, the Bibojee Group – owned by the descendents of Habibullah Khan Khattak, including retired Lt Gen Ali Kuli Khan Khattak – merged their two textile spinning companies as well: Janana de Malucho Textile Mills and Babri Cotton Mills.

However, the Bibojee Group companies are both located in Kohat, but while the majority of of the Tata Pakistan operations are located in Karachi, there is at least one company in southern Punjab.

Meiryum Ali
The author is a member of the staff and can be reached at [email protected]

Share this article

Recent posts

Popular categories

553 COMMENTS

  1. Thanks for the shared this informative and interesting post with us, I really enjoyed your post. If you are looking for best and reliable valuable property site in pakistan then try Value Property they also offering Rudn Enclave Rawalpindi Project.

  2. Thanks for the shared this informative and interesting post with us, I really enjoyed your post. If you are looking for best and reliable valuable property site in pakistan then try Value Property they also offering Rudn Enclave Rawalpindi Project.

  3. I got know your article’s Content and your article skill both are always good. Thanks for sharing this article this content is very significant for me I really appreciate you

  4. Thanks for sharing some of the most wonderful tips to follow while travelling because they would really help the people who are planning to travel to Dubai for the first time. Please keep sharing the helpful tips like this. Cheers!!!

  5. Thank you for sharing this information. If you want to buy online furniture then Gourmet Furniture has the online option to purchase furniture in Pakistani. We have the best Pakistani furniture collection out there with the ease of buying it online.

  6. Thanks a bunch for sharing this with all of us you really know what you are talking about! Bookmarked. Please also visit my web site =). We could have a link exchange contract between us!

  7. Discover the latest news from all Pakistani News Websites & Channels. Listen to Latest TalkShows audios OR read headlines from all the newspaper in one place. Read all Pakistani newspaper, headlines, current affairs and world news in Urdu and English Language.

  8. Profile Engineering is a modern company with a traditional attitude to quality and
    service boasting the latest technologies, state-of-the-art factory uPVC windows, and industry-leading materials
    we are able to create the finest quality products on the market uPVC windows in Lahore.

  9. Nhà cái Vegas79 uy tín nhất hiện nay, đi đầu trong lĩnh vực đá gà trực tiếp. Tiền thân của nhà cái Vegas Casino, sân chơi cá cược nổi tiếng nhất Đông Nam Á. Được cấp giấy phép hoạt động trong loại hình cá cược online.

  10. Desert Safari Dubai has perfect includes for Sole, Family, and Couples. If you are traverse in Dubai or on a stopover flight. You were most likely to do different activities in Dubai. Either than visiting malls, dine in restaurants or city sightseeing. For an adventure break, one should endure a 6 Hours Evening Desert Safari.

  11. A clear example of such acts is the free trial from Sony Playstation Plus and subsequent withdrawals from an account in silence. Well done Mastercard. It’s better late than never.

    • A clear example of such acts is the free trial from Sony Playstation Plus and subsequent withdrawals from an account in silence. Well done Mastercard. It’s better late than never.

  12. Thanks for the shared this informative and interesting post with us, I really enjoyed your post. If you are looking for best and reliable valuable property site in pakistan then try Value Property they also offering Rudn Enclave Rawalpindi Project.

  13. A great quick read but worth so much! Glad to see this informational post this morning. Thanks, buddy for sharing this information. Which will really help others. Since I’m a travel lover and have a hardcore passion to explore new places. If not physically but I try my best to explore them by reading these amazing blogs. Such as (Insert Link)

  14. Thanks for the shared this informative and interesting post with us, I really enjoyed your post. If you are looking for best and reliable valuable property site in pakistan then try Value Property they also offering Rudn Enclave Rawalpindi Project.

  15. Cassidy Freeman is an American actress and musician born in Chicago, Illinois, the United States on 22nd April 1982. Her birth name is Cassidy Bree Freeman and started performing at the age of 3. However, she is the youngest of three children, and the only sister of two brothers, parents Lee Freeman and Glynna Freeman are prominent attorneys in Montana.

  16. I have thought so many times of entering the blogging world as I love reading them. I think I finally have the courage to give it a try. Thank you so much for all of the ideas!

  17. Thanks for such nice sharing and information there is really amazing.I found a lot of interesting knowledge here. It’s really good post information , very thankful and hopeful that you will write many more posts like this one of the best .

  18. Thanks for such nice sharing and information there is really amazing.I found a lot of interesting knowledge here. It’s really good post information , very thankful and hopeful that you will write many more posts like this one of the best .

  19. Hello
    Thanks for such nice sharing and information there is really amazing.I found a lot of interesting knowledge here. It’s really good post information , very thankful and hopeful that you will write many more posts like this one of the best

  20. Denise Bidot Measurements biography and full-body statistics like her breast size, bra size, height, weight, shoe, eyes color, favorite perfume, favorite destination, favorite food, dress size, music albums, celebrity favorite makeup kit, Denise Bidot Social Media Profiles and hobbies! Check some other body measurements also!

  21. SapnaKaur is an independent escort girl available in Noida here I will not tell more things about her so in this case I will attach a website link along with which will help you to know more features as may not be analyzed on this page just see the website and find the best profile.

  22. Please proof read this article as I have written last night.
    Tara Lynn Measurements biography and full-body statistics like her breast size, bra size, height, weight, shoe, eyes color, favorite perfume, favorite destination, favorite food, dress size, music albums, celebrity favorite makeup kit, Tara Lynn Social Media Profiles and hobbies!

  23. I appreciate your work and knowledge. I will recommend this blog to others, more people will get the information and help. For the best quality information and quick updates.

  24. Nice post, thanks for sharing with us. If you are suffering from any kind of back pain or neck pain problem in UAE and searching for the best Chiropractor in Dubai visit spine and Joint Chiropractic. It is one of the best clinics for chiropractic treatment in Dubai (UAE). Explore now for more info.

  25. Nice post, thanks for sharing with us. I think Chiropractic is a health care profession. They treat problems related to the musculoskeletal system. If you are looking for Chiropractor Dubai (UAE) visit Spine and joint chiropractic. Explore now for more info.

  26. Thanks for SHaring such incredible information with Us, we want That Pakistan must grow in the field of Economical and in Energy operation as well. Very Well Keep it.

  27. Hello
    hanks for the shared this informative and interesting post with us, I really enjoyed your post. If you are looking for best and reliable valuable property site in pakistan then try Value Property they also offering Rudn Enclave Rawalpindi Project.

  28. Thanks for such nice sharing and information there is really amazing.I found a lot of interesting knowledge here. It’s really good post information , very thankful and hopeful that you will write many more posts like this one of the best .

  29. The Artemis Fowl series is made of novels in the science fiction fantasy genre written by Eoin Colfer, an Irish author. The novels feature the main character Artemis Fowl II who is a teen and a criminal mastermind.

  30. Who wants to miss out on the best T20 cricket league in the world? Especially if you are a cricket fan. This fall, subscribe to Hotstar and enjoy the rich and exciting cricket that people worldwide are eagerly waiting for. IPL 2021 starts on 8th April. Subscribe to Hotstar before that to enjoy uninterrupted live cricket action.

  31. If you are looking at Hotstar free trial in the USA, Let me clarify there are few ways to get this at a lower price with Promo: DESI40 but sorry to say, there is no free trial in the US. Let me walk you through the Step by Step Hotstar signup process:

    Click the link Hotstar Signup.
    Put Name, Email Id and password (You can signup through Facebook credential too)
    First, put Promo code (Refer below image) and see if the price is reduced to $44.99 and then enter Credit Card details.
    Enjoy Hotstar premium content, and IPL live Cricket.

  32. Hotstar UK promo codes to the users to enjoy unlimited live streaming of their preferred Hollywood and Bollywood shows, TV, movies, or sports at an affordable cost. The more enticing opportunity Hotstar provides to its users is that they can watch serials before their television premiere

  33. Thanks for such nice sharing and information there is really amazing.I found a lot of interesting knowledge here. It’s really good post information , very thankful and hopeful that you will write many more posts like this one of the best.

  34. Hey there, I am Rupali, a 22 year old independent call girl in Jamshedpur ready to make you forget about all the problems and entertain you. I am a natural brunette standing 5 feet 5 inches tall, with a slim 36 d24 36 figure, long hair, very sociable and funny. Don’t wait any longer and come and meet me, so you can enjoy my excellent treatment. I’m here to get you out of the rut, come meet me and discover the pleasures of life. Join me today so that we have a nice time, you will love my treatment. I’m more than you can imagine, able to take you to a delirium of pleasure, I’m in no hurry. Do not hesitate to come and meet me so that together we will have a good time when your wishes and mine will come true. Join me, the most beautiful escort girl in the whole city. Let’s have a wonderful time together and forget about everything. I’m good company and I’ll be on hand to surprise you and make you super satisfied. I assure you, you won’t regret seeing me as I want to have a nice time with you. I would be fascinated to practice many poses and make you have the best of your experiences. Come and meet me, I will be waiting for you, very sexy and eager for unbridled sex. It will be a pleasure for me to offer you my excellent services, cheer up and you will feel what good sex really is.

  35. Greetings, gentlemen, this is Rupika Sharma, 20 years old and and a college student and independent call girl in Vastrapur. Come and spend some quality time with me. We can start off our date real nice and slow, where I will provide you with a relaxing but sensual massage before we get to the main course. Wonderful and unbelievable moments of erotic joy and endless pleasure await you, dare to seek them. With me you will forget all your problems. I will give you an orgasm like no other and that you will not soon forget. I’m a fiery lover with a passion for eroticism. You can trust that I will give my all in every single encounter I have, come my way. I’m just as dedicated as I am discreet. I want you to feel comfortable and safe if you choose to procure my services. I am equally open-minded, focused and willing to experiment. From the very first night you spend with me, you will know.

  36. Hey, thanks for posting amazing articles. These blogs would definitely help us keep posted about new trends in the market.
    Thank you so much for sharing this post, I appreciate your work.

  37. Thanks for the shared this informative and interesting post with us, I really enjoyed your post. If you are looking for best and reliable valuable property site in pakistan then try Value Property they also offering Rudn Enclave Rawalpindi Project.

  38. Find 1,2,3 bedroom Apartments For Sale in Lahore with Aetmaad. We are the leading real estate marketing agency in Lahore Pakistan with a 100% customer satisfaction ratio.

  39. Profile Engineering is a modern company with a traditional attitude to quality and
    service boasting the latest technologies, state-of-the-art factory uPVC windows, and industry-leading materials
    we are able to create the finest quality products on the market uPVC windows in Lahore.

  40. Thanks for such nice sharing and information there is really amazing.I found a lot of interesting knowledge here. It’s really good post information , very thankful and hopeful that you will write many more posts like this one of the best.

  41. LDA CITY LAHORE | LDA Project | KHAN ESTATE
    LDA City is a Project of the Lahore Development Authority It consists of 5 Marla, 10 Marla, 1 Kanal, and 2 Kanal Residential Plots files.

  42. MadrasRockers is a taken page that allows its customers to download fitting films constantly. This commended online part expectedly offers movies named Tamil and Tamil before the film is passed on or when it is showed up in theaters

  43. Nice Article. I like Your Blogs I Always Read Your Blogs. Its Inspiring Me. I Like Your Article Writing Skills.
    Short Stories For Everyone | TV Subtitles | English Subtitles Download | English Subtitles SRT | Open subtitles| Yts Subtitles | Yify Subtitles | Movie Quotes & Facts

  44. Nice Article. I like Your Blogs I Always Read Your Blogs. Its Inspiring Me. I Like Your Article Writing Skills.
    Short Stories For Everyone | TV Subtitles | English Subtitles Download | English Subtitles SRT | Open subtitles| Yts Subtitles | Yify Subtitles | Movie Quotes & Facts

  45. Thanks a lot for sharing this with all people you actually recognise what you are speaking about! This is Really Helpful for Everyone! Thanks for sharing…

  46. ArcoDesk is A Pakistani Architecture Practice-Based Firm In Islamabad/Rawalpindi, that Deals With Architecture, Interior Design, Planning, Construction, And Project Management. ArcoDesk Is A Group Of Professional Architects, Designers, Engineers.

  47. Female to male massage is most popular and common massage therapy in fact best known massage type in world. Purpose of female to male massage is to give complete relaxation to body and it must be performed by well trained female massage therapist.

  48. Amazing Content. Thanks for the information.

    thank you for sharing the information very useful and provides good knowledge and is worthy of appearing on the trail

  49. IMBMS (Indian Medical Business Management System) is one of the leading active retail suppliers in the market today. Outstanding assortment and distribution of premium grade personal care products have made us one of the most trusted names in the market. From skin whitening products to fairness cosmetic and night creams, we deal in almost every variety of personal care beauty products that will make you look younger for longer.

  50. I have seen some great stuff here. Worth bookmarking for revisiting. I surprise how much effort you put to create such a great informative website. Your work is truly appreciated around the clock and the globe.

  51. Our team make sure the clients satisfaction, This thing confirmed by the clients satisfactory comments after selling and purchasing through Khan Estate.

  52. A clear example of such acts is the free trial from Sony Playstation Plus and subsequent withdrawals from an account in silence. Well done Mastercard. It’s better late than never.

  53. I have seen some great stuff here. Worth bookmarking for revisiting. I surprise how much effort you put to create such a great informative website. Your work is truly appreciated around the clock and the globe.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Recent comments

Muhammad Wahab Ahmed Malik on Import of used cars surges 166pc in seven months
Dr. Muhammad Iqbal Baig on PIA slashes fares for domestic flights
Arshed Mahmood Malik on PIA slashes fares for domestic flights