Agastya Corporate Park

India / Maharashtra / Sasti /
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Coordinates:   19°5'12"N   72°53'7"E

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  • Kamani Tubes is a worker owned company located in Bombay. Before that, the Kamanis, a well-known business family owned it. This company, that makes brass rods and tubes for use in refrigeration and sugar production was established in 1959. It was a leading firm till the middle of 1970s, controlling 60 percent of the market. By 1985, the trouble started due to misunderstanding among the members of Kamani family and financial difficulties. Kamani family abandoned the factory, as the quantum of loss was uncontrollable. When the owners abandoned, the independent union consisting 600 workers approached banks, financial institutions and the state government to help revival. None of them responded positively. The union then formed a cooperative to take over the firm. Claiming that workers could raise the share capital from their provident fund, wage arrears and loans, the union filed a civil petition in the Supreme Court. The court asked the Board for Industrial and Financial Reconstruction (BIFR) to examine the union's proposal. The BIFR gave a favourable report, but by now the Kamanis had returned to claim the company. In spite of the legal hurdles they created, the Supreme Court upheld the workers' action. By the end of 1988 the shares were transferred to the cooperative In addition to workers' contribution, the state government sanctioned a sizeable grant. Since revival, the company has made good progress. Production, wages and profit have gone up. The worker owned company pays annually around Rs.3 crore as excise duty. ^ Thus reviving the company has been beneficial to the government too.
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This article was last modified 7 years ago