Global textile majors to weave investments in Guj

Textile investments to treble than previous Vibrant Gujarat Summit

The Gujarat government's efforts to rope in leading national and international players in textiles, especially in spinning and technical textiles, is set to pay off well this year. In a first, technical textile biggies like TenCate - Geosynthetic and American Hygienics Corporation have been learnt to be interested in setting up shops in Gujarat. When fructified, this may give the state government's plans to develop the textile sector a shot in arm.

While the European major TenCate combines textile technology with related chemical processes to develop specialist and protective materials for fire-fighting clothing, and strong, lightweight materials in aircrafts, Shanghai-based American Hygienics Corporation is one of the leading and fastest growing manufacturers of baby wipes, wet wipe applications and other personal care products in the Far East.

What's more, according to state government sources, investment commitments in textile sector during the upcoming Vibrant Gujarat 2011 Summit is set to treble from the previous 2009 summit's Rs 8,400 crore-odd commitments for the sector. Investment proposals in textiles has crossed already the Rs 20,000 crore mark, announcements for which are likely to be seen during Vibrant Gujarat 2011 Summit through more than 132 memorandums of understanding (MoUs).

In textiles, the government has been emphasising on fresh investments in the spinning, technical textiles and apparel verticals. While at least two major international technical textiles players will be announcing investment intentions for the first time in Gujarat, there are several other new investments to be seen in spinning and other verticals from domestic companies.

Of the 130-odd proposals so far received by the state government, almost 45-50 are from the spinning sector, 15-20 are from technical textiles, while rest are spread across apparel, weaving and processing verticals, among others. Nationally, Kolkata-based Lux Hosiery Industries has also been learnt to be considering the state for its expansion plans. According to government sources, Lux Hosiery is mulling setting up of a spinning unit and is scouting for land in Gujarat.

The company is believed to be looking at a capacity of around one lakh spindles at an investment of around Rs 250-300 crore. If set up, the spinning unit will help Gujarat raise the capacity by 4-5 lakh spindles which the government is eyeing in the next 4-5 years at an investment of Rs 900-1,000 crore. Apparently, Gujarat is keen to see at least one lakh spindles being develop every year. With the given resources, it will take, on an average, around Rs 20-25 crore of investment in Gujarat for setting up a spinning unit of minimum 12,000 spindles.