Nahar Group, a leading Indian textile firm, has announced that it would invest Rs. 15 billion for expansion of its Punjab-based spinning and denim capacities.
The announcement came just a day after the Punjab government unveiled its new industrial policy embracing a whole range of incentives.
Kamal Oswal, Vice Chairman and Managing Director of Nahar Industrial Enterprises said pursuant to their Rs. 15 billion expansion plan, the company would install 200,000 new spindles at its yarn producing units at Malerkotla and Jodhan in Ludhiana and Larlu in Mohali, Business Standard reported.
Presently, the company has a total installed capacity of 800,000 spindles.
The company also plans to expand its denim production capacity from the existing 20 million meters to 40 million meters per annum. For this, it plans to boost its Ludhiana plants capacity by 20 million meters, Mr. Oswal said.
The spinning and denim capacity expansion would take place within next two to three years, he added.
Following expansion, the company’s turnover is expected to grow from the existing Rs. 60 billion to Rs. 80-90 billion. The expansion effect would mainly be seen in the topline, Mr. Oswal said.
The expansion would be funded through a mix of internal accruals and borrowings, he added.
In the new industrial policy pronounced on June 3, Punjab government has assured to offer VAT exemption of 50-80 percent to new producers including those in integrated textile sector.
Also, the state government announced total exemption from stamp duty, property tax and electricity duty and 75 percent exemption in Central Sales Tax (CST) for upcoming units and expansion projects.
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