By P.S. Anantharaman, IANS
Ahmedabad : Gujarat, known for its textile processing, weaving and garmenting business, is now witnessing a steady flow of investments in cotton spinning.
Textile industry sources here attribute the development to the plentiful availability of quality cotton and growth of private sector ports, making export of textile products lucrative.
The investment is coming in spite of reduction in business margins and lower exports due to rupee appreciation, the sources said.
For instance, the opening up of a private sector port at Pipavav has encouraged Chennai-based TT Limited to shift its proposed spinning unit to Kadyadi village in Amreli district.
Earlier, the company proposed setting up a spinning mill with 25,000-spindle capacity in Gondal in Rajkot district where it is also establishing a ginning factory.
According to the company’s annual report for the year ended March 31, it has been decided to double the spindle capacity to 50,000. The target date fixed for the plant to go on stream is December this year.
City-based textile major Chiripal group has also decided to expand its product portfolio by adding cotton yarn.
Rakesh Dave, an executive of the group, told IANS that two spinning lines were being installed at the integrated textile unit of the group firm, Nandan Exim Limited.
“We have installed 7,200 spindles in one line and have gone for rotor spinning technology in the second line. The total investment is about Rs.70 crore (Rs.700 million),” he said.
Not to be left behind is Jindal Worldwide, another textile player. The company is essentially focusing on the home textiles business but has also forayed into spinning with an investment of Rs.400 million.
Jamnagar-based Oceanic Industries is setting up a cotton and blended yarn unit at Rajoda-Bavla on the outskirts of Ahmedabad. A spokesperson of the company said the unit would have 15,120 spindles entailing an investment of Rs.200 million. The plant is expected to commence production 2008, he said.