Nahar to set up denim unit

Nahar Industrial Enterprises Ltd, one of the oldest textile manufacturers in Punjab, is putting up a denim textile unit at an investment of Rs 150 crore. The new unit is located at Lalru in Patiala in an area of 50 acres and will commence production by February next year.

Company Director Kamal Oswal told Business Standard the new unit would be an arm of Oswal Woollen Mills and had the capacity to produce 20 million metres of denim per annum. The company produces denim fibre, largely meant for export.

With the upcoming unit, Oswal Woollen Mills will start production of denim textile that would be sold in domestic (40 per cent of the production) and international (60 per cent of the total output) markets.

"This is going to be a big project with large investments and so it may take some time," said Oswal. According to Kamal Oswal, Nahar Industrial Enterprises Ltd has a target of investing Rs 1,000 crore in the near future. The company plans to invest Rs 800 crore in weaving, processing and spinning, which would double the existing capacities.

Oswal said the elimination of quantitative restrictions in the post-quota regime had provided unlimited opportunities for the Indian textile manufacturers in the international markets.

"We are going to add 25,000 spindles at a capital outlay of Rs 80 crore to meet the increasing demand in the global market. This expansion will enhance the spindle capacity to 180,000 and will be funded through internal accruals and loans under the textile the upgrade fund," he said.

He said the company was manufacturing and selling readymade garments under the brand name "Cotton County" in the 30 exclusive outlets of the company across India. "Cotton County" was launched this year to cater for middle-class customers and the company already has its premium brand "Monte Carlo" for high-end customers.

The target is to have 100 company retail outlets by March next year, which will make the turnover target of Rs 100 crore achievable, according to Oswal.