Originally promoted by J P Goenka, the Bombay-based Swan Mills was already sick when it was taken over by the Dave group in 1990. In three years, its accumulated losses touched a whopping Rs 92 cr. It was referred to the BIFR for a revival package in 1992. Swan Mills has five units -- Aryodaya Spinning & Weaving Mills, Ahmedabad; Basanti Cotton Mills, Calcutta; and, Kurla Spinning & Weaving Mills, Swan Mills and Jubilee Textile Mills in Bombay.

The BIFR proposal envisaged revival of only the spinning unit -- Swan Mills. In 1993-94, the company started operations in all departments by accepting job work. Nearly 80% of the processing work in the mill is being run on job works. As per the BIFR package, the company disposed excess land owned by it on a commercial basis. The company achieved a turnaround by posting a profit in 1993-94.

With the funds available through land sale, the company is carried out a modernisation programme. Through merchant exporters, it started supplying to big retailers in Europe like Marks & Spencers, the UK retailing giant. It also diversified into the manufacture of cuprammoniam rayon yarn by setting up Vini Rayon Industries, a joint venture with the Gujarat Industrial & Investment Corporation. For this, it has tied up with Ralston & Associates, US, to created and deployed a pilot plant near Jagadiah, Gujarat. In Dec'95, BIFR declared that the company is no longer sick and discharged it from its purview.

On successful implementation of Voluntary Retirement Scheme, all the manufacturing activities has been suspended as all the operative workers/staff have opted for the scheme.