Hong Kong-based Pacific Textiles Holdings Ltd is considering setting up a textile mill in Madhya Pradesh, probably in Budni, through a joint venture with SP Oswal-promoted Vardhaman group. | |
| The Oswals have finalised their plans to set up a textile yarn unit in Budni (Sehore district) with an investment of Rs 750 crore and another one in the Satlapur industrial growth centre near Mandideep (18 km from Bhopal) with an investment of nearly Rs 500 crore. But much will depend on the government's response. Vardhaman supplies cotton yarn to Pacific Textiles. |
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| Chief Executive Officer Bill W T Lam, along with SP Oswal, discussed the project with Chief Minister Shivraj Singh on Friday. |
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| "Although the firm is planning to set up a knitting unit anywhere in India, our positive response to them will fetch results. They may go along with their supplier Verdhman for the venture," said Raghav Chandra, managing director of the Madhya Pradesh State Industrial Development Corporation (MPSIDC), adding, "they said their investment will be Rs 500 crore". |
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| Tam had said he would come with a formal proposal soon in this regard. Initially they will put up a textile unit and later they may come up with a garment unit." |
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| Pacific Textiles Limited is a large company in manufacturing and trading of textile products. Established in Hong Kong, the firm has its production base in Panyu, Southern part of China. The company is a major player in Hong Kong and has recognition on international map. |
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| The firm manufactures dyed fabric, knitted fabric and printed fabric. "A team of the company also visited sites in Mandideep and Budni. We will allot them the land and offer concessions according to our investment promotion policy 2004," said Chandra. |
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| Textile sector, one of the most promising sectors is facing a turbulence time in Madhya Pradesh. |
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| As many as 22 units are lying closed at the end of 2004-05. With state cotton fabric dwindling from 47305 thousand sq meters to 39035 thousand sq meters in 2003-04 (source Madhya Pradesh Textile Manufacturing Association), the blended cotton has also reduced from 4,280 thousand sq meter in 2002-03 to 3456 thousand sq meters. |
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| Further the installed capacity of the state dwindled from 1,352,000 spindles (non small scale and small scale units) in 2002-03 to 12,39,000 spindles in 2003-04. |
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