Vardhman group's MP investment up

Firm's investment in the state touches Rs 1,400 cr, up from Rs 1,100 cr proposed earlier

The Vardhman group has increased investment in Madhya Pradesh in its proposed textile units.

The firm is setting up two textile units in Madhya Pradesh, one in Satlapur and the other in Budni, within two years.

In a programme organised in a low-key manner at Satlapur (near Mandideep industrial area), the foundation stone of its yarn unit was laid.

"The total proposed investment of the firm is now touching Rs 1,400 crore against Rs 1,100 crore proposed earlier," said a senior government official.

However, SP Oswal, chairman of the Vardhman group and his existing Mandideep unit employees, did not make any statement regarding this. "The new unit will generate 2,000 jobs," said a government official.

Of them, a majority will be machine operators. The Satlapur unit investment has increased to Rs 600 crore from earlier Rs 350-400 crore," the official said.

While the composite textile unit at Budni in district Sehore will be set up with an investment of Rs 800 crore. "This unit will generate 2500-3000 jobs," said the official.

Despite acute power shortage, particularly quality power for industry, textile units are looking at Madhya Pradesh for cheap labour cost. The state government has offered flexibilities in labour laws. "A machine operator in a textile unit is hired at a maximum Rs 2500 per month," a textile industry source told Business Standard.

Verdhman group already has a 100 percent export orient unit in Mandideep Anant Spinning Mills, which has been set up with an investment of Rs 200 crore.

The cotton yarn production stood at 41433 thousand kgs, blended yarn 13885 thousand kgs and 100% not cotton yarn stood at 3077 thousand kgs in the state during 2003-04.

"Of the total spun yarn production in the country, private sector mills produced more than 93%, while the combined production of cooperative sector and public sector mills stood only 7%," said Madhya Pradesh Textiles Manufacturer Association sources.

Verdhman is also planning to join hands with a Hong kong based garment firm Pacific Textiles. The firm is likely to come up with a proposal to invest at least Rs 500 crore in knitted fabric segment in Satlapur or Budni.

Verdhman is yarn supplier to the firm.