For instance, after investing in its own denim, spinning, shirting, real estate and other business, Ahmedabad-based textile conglomerate Arvind Limited is now learnt to be investing around Rs 2,000 crore in an integrated textile park. On the other hand, Welspun India Ltd. is investing close to Rs 3,000 crore for an integrated manufacturing plant.
"There have been companies from outside the state showing interest of investing in Gujarat. At the same time, there are existing players in the state like Arvind Ltd. and Welspun who are expanding their presence in the textile sector in Gujarat," said a senior state government official.
As per the official, Arvind Ltd. will be setting up an integrated textile park that can house around 50 units near its existing plant at Santej, for which the company is scouting for a land of over 200 acres. When asked, an Arvind Ltd. spokesperson said, "There is nothing on drawing board as of now but we are always looking at options."
On the other hand, it has been learnt that Welspun will be investing close to Rs 3,000 crore for an integrated textile manufacturing plant.
"The Welspun India plant will focus on almost the entire textile value chain, right from spinning, weaving, processing and manufacturing," the official stated, adding that it was unclear if the new plant would come up at the existing Welspun City in Anjar, Kutch. An email query to Welspun India did not elicit any response at the time of writing this report.
While Arvind has a shirting and knitting plant at its 450-acre Santej textile complex, Welspun India's Anjar complex, apart from manufacturing spiral arc welded (SAW) pipes, houses a textile mill that produces terry towels and bed linen.
Moreover, according to government sources, both the companies would also be signing a memorandum of understanding (MoU) for the same at the upcoming Vibrant Gujarat Summit 2013.
An Rs 5,000 crore textile conglomerate, Arvind Limited recently made some acquisitions to enhance its apparel brands and retail business. Meanwhile, the Rs 3,000 crore textile business of Welspun India expects to peg a CAGR of over 20 per cent for its topline and 35-40 per cent for its bottomline for the fiscal year ending March 31, 2013.
After they together paid Rs 12 lakh to settle charges related to alleged delay in amending insider trading norms