The flagship of the Modern group and chaired by H S Ranka, Modern Woollens (MWL) incorporated as a private company in Aug.'76 and was converted into a public limited company in Mar.'86. During 1995-96, MWL changed its name to Modern Terry Towels Ltd (MTTL).
In Oct.'89, MTTL came out with a public issue of FCDs to part-finance its expansion-cum-diversification plans to manufacture woollen tops totalling Rs 30 cr. It manufactures woollen products such as scoured wool, worsted and carpet yarn, woollen tops and terry towels. MTTL has a technical collaboration with Ashtons, a division of Courtaulds Textiles, UK, to produce quality towels. MTTL has set up a 100% EOU with an integrated facility to manufacture 5000 tpa of terry towels at a cost of Rs 15.4 cr in collaboration with Ashtons. To part-finance the project, it went public with PCDs in Feb.'92. MTTL exports its products to the US, the UK and other European countries. As a part of restructuring, the woollen division has been vested with Modern Threads (India), following which it's thrust is only on terry towels. MTTL's terry towel unit is Asia's largest and the sixth largest terry towel manufacturing unit of the world.
The accumulated losses of the company during 2001, have resulted in erosion of more than 50% of its peak net worth making it a potentially sick industrial company and has reported to the BIFR. The refernce is now under consideration of BIFR.