Nahar Group to build textile park in Punjab

Firm to invest Rs 1,050 crore in the park in the next two years

Vertically integrated textile company Nahar will invest an additional Rs 1,050 crore in the next two years on its 550 acre textile park at Lalru in Patiala district of Punjab.

"In the next phase of expansion the company is setting up new spinning units with a capacity of 1,25,000 spindles, 4,320 rotors and 250 air jet looms and process house with a capacity of 1,00,000 metres per day," Nahar Group Vice Chairman and Managing Director Kamal Oswal said.

To part finance the capital expenditure, the company has issued zero coupon FCCBs aggregating $45 million, convertible at Rs 200 per share. Balance cost of the project shall be met out of internal accruals and rupees term loans under technology upgradation fund scheme, he said.

The company has already invested Rs 1,500 crore on the park to develop infrastructure and set up for spinning and weaving units. So far the company has set up over 1,50,000 spindles, 1800 rotors, 426 air jetlooms, a processing house with the capacity of 1,00,000 metres per day, a mercerising unit with a capacity of 2,040 meters at the park and a denim manufacturing unit with a capacity of 20 million metres per year.

The company has also put up a 17 Mw co-generation power plant to meet requirements of the units in the first phase and in the second phase an additional power generation capacity of 21 Mw will be set up.

The expansion plan would be completed by 2008 and provide employment to more than 4,500 people, Oswal said. After the park is fully operational it will have 2,75,000 spindles, 6,120 rotors, 676 air jet looms, process house with a capacity of 2,00,000 metres per day, mercerising unit with a capacity of 2,040 metres per annum, denim manufacturing unit with a capacity of 20 million metres per day.

In the first nine months of 2005-06, Nahar Group revenues stood at Rs 522.04 crore and a net profit of Rs 47.58 crore.