Saurashtra to attract big investments in spinning

Industry sources estimate Rs 2,000-2,500 crore investment in the next two years

Encouraged by the state government’s new textile policy, the cotton industry in Saurashtra region is exploring new lines of business in the spinning mills sector.

Industry sources estimate that around 50-75 new spinning units are likely to come up in the region over the next two years with an investment of around Rs 2000-2500 crore.

There are already 10-15 operational spinning mills in the Saurashtra and another 25-30 units are under construction in Rajkot, Jasdan, Gondal, Amreli and Morbi areas of Saurashtra.

T T Textiles Ltd, a listed textile firm, which already has two spinning mills in Rajula of Amreli district, is planning to set up one more unit.
 

“Saurashtra will become a hub of spinning in the state as many industry players are diversifying into this business. Moreover, some South Indian companies are also considering entry into the Gujarat market”, said Bharat Boghara, who owns a ginning unit in Jasdan.

He is in the process of setting up a spinning mill with capacity of 27,000 spindles for an investment of Rs 90 crore. "Our unit is likely to start by November this year,” Boghara said.

Most of the new units are going to come up at the Rajkot, Jasdan, Babra, Morbi and Gondal area where other ginning factories are located.  

The new textile policy envisages starting cotton spinning and weaving parks around cotton growing areas and will provide support for energy and water conservation and environmental compliance.  Among the slew of incentives, the policy will provide interest subsidy for value-addition chain from ginning to spinning, weaving, processing, garment manufacturing and technology up-gradation.

It will refund VAT on expansion of existing and new units in spinning and readymade garments; provide power tariff concession for new cotton spinning and weaving units; give financial assistance to skill development centres for textile industry and offer financial assistance for technology acquisition to move up the value chain.

“As Gujarat is the leading cotton growing state in India, state government’s textile policy has encouraged local players to enter a new segment of cotton industry. Huge investments are expected in this sector in the coming days. About 50-75 new spinning units likely to start within two years in Saurashtra”, said Anand Popat, secretary of Saurashtra Ginners Association.

Both Popat and Boghara feel that around Rs 2,000-2,500 crore investment is expected in the Saurashtra region alone in the spinning sector.

Popat is also considering setting up spinning mill. He said, “Some South players are also considering to come in Gujarat to start spinning mills here as they have power problem in their state, and compared to other states, power condition is better in Gujarat.”