Pratibha Syntax to invest Rs 627 crore in MP
Firm plans technical upgrade of existing units
| The MP government has cleared Mumbai-based Pratibha Syntax's plan to invest Rs 627 crore in a unit manufacturing terry towels, grey fabrics, and processed fabrics. |
| The state government has allowed the firm to acquire 60 acres. |
| "The apex committee on investment promotion, chaired by Chief Minister Shivraj Singh Chauhan, has cleared the proposal of the firm to set up an open-end spinning, dyeing and garment unit in the Indore SEZ and the expansion of its unit in Pithampur, with an investment of Rs 627 crore. This will generate jobs for 2,376 people in the SEZ, and 990 people in Pithampur, while the number of indirect jobs may go up to 30,000," a senior government official told Business Standard, adding, "the committee has cleared the land acquisition process for the firm and, accordingly, 30 acres of land will be acquired for the firm on 25 per cent fixed premium, while the rest will be acquired at fixed rates." |
| Although the company had sought uniform concessions similar to those offered by the Punjab government in its industry policy, including concessions on the premium of land, concessions on electricity duty on captive power, etc., the chief minister has asked officials to extend only those concessions available in the MP Industrial Promotion Policy. |
| The company has plans to set up a terry towel unit of Rs 399 crore in the Indore SEZ and to expand its unit in Pithampur with an investment of Rs 194 crore. |
| With this investment, Pratibha will manufacture 23,895 metric tonnes of terry towel, 4,025 metric tonnes of grey fabrics, 3,675 tonnes of processed fabrics, and 1,440 tonnes of cotton yarn at the SEZ. It will also manufacture 79,600 units of garments. |
| The investment plan will take shape in two phases: Rs 399 crore to produce 14 metric tonnes per day of 100 per cent cotton yarn, with an addition of 11.5 metric tonnes per day. |
| Under the second phase, the company will add 25,200 spindles to its Pithampur unit to manufacture fine count yarns. |
| "The investment in its existing unit will reach Rs 275 crore, and generate employment for 3,000 people," said a source. |
| Pratibha Syntax Ltd also has contract farming arrangements with farmers on 22,000 acres of land in the Khargone district of Madhya Pradesh. |
| The company has a presence in the garments market under the brandname Pratibha, for underwear, sportswear, leisure wear, and loungewear for women, men, kids etc. |
| Pratibha had invested Rs 80 crore to set up a cotton-spinning mill in Pithampur (Dhar district) with installed production capacity of 48,048 spindles that manufactures 12,875 tonnes of yarn annually. |
| With the new plan, the company will go for technical upgrade of its existing spinning units, to become one of the top terry towel manufacturing firms in India. |