KARACHI: Dawood Lawrencepur Limited (DLL), the pioneers of textile composite units in Pakistan, has announced to suspend operations of Lawrencepur Woolen and Textile Mills with immediate effect.
DLL is one of the few woolen and worsted fabric spinning and weaving units in the region.
Lawrencepur woolen and worsted fabric, the most prestigious names in French and Italian fashion industry, will now operate under licence.
“Due to fall in demand and its adverse impact on the worsted fabric industry in Pakistan, the board of directors of the company has decided to suspend operations of Lawrencepur Woolen and Textile Mills with immediate effect,” Hafsa Shamsie, company secretary of DLL, said.
“However, the ‘Lawrencepur’ brand will continue to operate under the licence,” she added.
The decision is in line with the company’s strategic intent to focus on the renewable energy business, development of which is vital for the country’s economic growth.
The board has also approved a voluntary separation scheme for the management and non-management employees of Lawrencepur Woolen and Textile Mills.
Dawood Lawrencepur Limited was formed in 2004 by the amalgamation of Lawrencepur Woolen and Textile Mills Limited, Dawood Cotton Mills Limited, Burewala Textile Mills Limited and Dilon Limited.
For the last half a century, these companies have embodied tradition and quality.
In 2008, DLL acquired a wind power project, which is progressing satisfactorily and is a first step towards establishing the company’s presence in the alternative energy domain.
The profits from the textile business of Dawood Lawrencepur Limited stood at Rs2.775 million in the half-year ended June 30, while profits from the renewable energy was Rs3.145 million during the same period.
The textiles business yielded a profit of Rs35.145 million in the half-year ended June 30, 2012, which drastically fell to Rs2.775 million this year.
“As we explore the external economic environment, we view an opportunity to deliver profitability in a manner that can also benefit the people associated with us, as well as the planet we occupy. We feel that sustainable development through use of alternative energy resources, eg, wind, solar, etc, is the solution to building a brighter and cleaner future for our children, without putting any further pressure on the country’s already diminishing natural resources,” an official of the company said.
“It is our strategic intent to play a leading role in the development of the renewable energy sector of the country, as we firmly believe that this is a critical yet overlooked area of the economic development, as well as the right legacy to leave for our future generations.”