S P Oswal group to invest Rs 1,300 crore in MP units

The S P Oswal group has rolled out a plan to pump in a big amount in its Madhya Pradesh units. The group will make a combined investment of Rs 1,200 crore in its three units, besides a new sew thread unit to be set up with an investment of Rs 110 crore.

The group has its units in Mandideep (18 km south of Bhopal), Satlapur (near Mandideep) and Budni near Bhopal.

“We will put in Rs 296 crore in Vardhman Yarn Satlapur to add 57,000 spindles to existing 230,000 spindles. Similarly, Vardhman Fabric Budni will have additional loom and spinning capacity with an investment of Rs 675 crore,” a top executive of the company told Business Standard. All the expansion plans will be over within one-and-a-half years.

“Our sew thread unit will generate 1,200 jobs, while 400 or more jobs will be created in Satlapur unit and 500 jobs will be created in Budni,” S Pal, chief executive officer, Anant Spinning Mills, Mandideep, said.

The group has applied for various concessions and tax exemptions from the state government in accordance with the industrial promotion policy. Satlapur unit is the largest in terms of spinning capacity and known as Vardhman Yarns.

Earlier, in Khajuraho, the chairman of the company S P Oswal said, “Madhya Pradesh is the right place for expansion due to easy and smooth process and also for cheap labour. We have enough land for the purpose at our existing unit in Mandideep, and we will have four lakh spindles in Mandideep and nine lakh spindles all over India.”

The company, he said, is also likely to start a new shirting unit at a later stage. It makes shirting cloth at Ludhiana at present. Vardhman group ventured in Madhya Pradesh in 1990 with its Anant Spinning Mills due to political and civic unrest in Punjab those days.