Janana De Malucho Textile Mills Limited (JDMT) has become the second textile group within a week to announce a halt in production due to challenging economic conditions, rising power costs, and a shortage of affordable, high-quality cotton.
JDMT announced this through a notice it sent to the Pakistan Stock Exchange (PSX) in accordance with Sections 96 and 131 of the Securities Act, 2015 and Clause 5.6.1 (a) of the PSX Regulations.
The company said that it was unable to continue with the production activities due to the prevailing economic conditions in the country, increase in power cost and non-availability of quality cotton at an affordable price, decrease in sales and accumulation of finished goods stock due to slow down of yarn markets.
Therefore, the company has decided to temporarily shut down production activities for the time being.
JDMT was incorporated as a public company in 1960 under the Companies Act, 1913 (now the Companies Act, 2017).Â
The company is engaged in the production of super fine counts of 80s and 100s combed/carded yarn from extra-long staple cotton of USA Pima and CIS origin. It manufactures and sells 40/s combed and 60/s combed yarn for air jet looms which is being sold on premium.
It said that the management will continue to monitor the situation for future course of action, and was committed to resuming production activities as soon as the situation improves.
Earlier, on October 29, Ghazi Fabrics International Limited, a Pakistani exporter of fabric to Europe, the USA, and the Far East, announced to partial halting of production activities in its weaving plant, citing challenging economic conditions, soaring power costs, and a shortage of affordable, high-quality cotton.
According to data from the Pakistan Cotton Ginner’s Association (PCGA), cotton arrivals in Pakistan declined by 59% by the end of September compared to the same period last year.Â
Total arrivals reached 2.04 million bales, down from 5.025 million bales in September 2023, marking a drop of 2.985 million bales.
