Business

Sintex Industries to Invest US$ 300 Million to Setup a Cotton Yarn Spinning Plant in Gujarat

Gujarat based Bharat Vijay Mills (BVM) part of Sintex Industries Ltd is planning to set up a large spinning plant in the port township of Pipavav. The parent company Sintex Industries will invest Rs. 1800 crores (US$ 300 million) in phases to build the mammoth 320,000 spindles yarn spinning unit. The proposed yarn spinning unit will produce fine count cotton yarn largely for export market and will begin its commercial operation in 1016-17 fiscal. The port township of Pipavav as location for the new cotton yarn spinning facility will be ideal as it is also in close proximity to the cotton growing regions in the state. Thereby, save huge amount of logistic cost for the company in raw material procurement and export of finished goods.

The company’s existing textile division under BVM is located at Kalol near Ahmedabad that house a composite textile manufacturing facility from spinning to high-end structured dyed yarn shirtings to sophisticated home furnishing and technical textiles. For the year 2013-14, the Sintex Industries ltd’s textile division turnover was Rs 546 crore (US$ 91 million).

Favorable Textile Policies of Gujarat and revised TUFS along with high demand of Indian yarn from overseas market and abundance availability of cotton has fuelled investment in the spinning sector in Gujarat in the recent years.