``Negotiations are on with them and they have shown keen interest and a deal is to be finalised soon,'' TTK group managing director TT Jagannathan told The Financial Express in a special interview.

TTK Textiles is a BIFR case with a carry forward loss of Rs 26 crore.

According to Jagannathan, the TTK family has pumped in a fresh capital of Rs 20 crore with a view to reviving the ailing company. Loan claims of financial institutions amounting to Rs 4 crore has also been paid off. BIFR hearing for reviving the company is due on November 25 this year.

The attempt to infuse a new life into TTK Textiles comes in the wake of interest shown by Sarah Lee which is already in alliance with consumer products division of TTK Pharma Ltd (now renamed TTK Healthcare Ltd after merger with TTK Biomed Ltd recently). Sarah Lee's consumer products like Kiwi shoe care range, Brylcreem etc are marketed by TTK Pharma.

According to Jagannathan, TTK Textiles is looking for a joint venture with Sarah Lee having majority stake in the Tantex unit which is manufacturing undergarments.

Meanwhile, a decision has been taken to split TTK Textiles into two companies. The yarn unit located in Nagari in Andhra Pradesh with a capacity of 25,000 spindles and a turnover of Rs 35 crore is to be hived off. The Indian Textiles Paper Tube Company (ITPT), which is part of the TTK Textiles, has been closed. This unit used to be intermediate suppliers manufacturing ring tubes and paper cones for the yarn unit.

The Tantex unit in Tanjore which had a turnover of Rs 20 crore will be spun off as a joint venture company with Sarah Lee as majority equity partner. With Sarah Lee willing to come in, TTK Textiles expects to introduce the Hanes brand of undergarments in the country. Sarah Lee, it is said, is the world's largest manufacturer of undergarments.