SP Oswal promoted Ludhiana- based Vardhman Group is on an expansion spree and is going to expand its Madhya Pradesh units. The company will expand capacity of its Mandideep (Bhopal unit) by another 55,000 spindles from existing 3.5 lakh spindles and will pump in Rs 250 crore in the venture. The expansion will be over by March next year.
Further, the company has readied a plan to expand its Satlapur unit, the largest in terms of spinning capacity and known as Vardhman Yarns (near Mandideep) by another 60,000 spindles. This expansion will be completed by December 2011.
“Madhya Pradesh is a right place to do expansion due to easy and smooth process. We have enough land for this purpose at our existing unit in Mandideep, with this expansion we will have 400,000 spindles in Mandideep and 900,000 spindles all over India. We are likely to invest Rs 250 crore in Mandideep unit and Rs 235 crore in Satlapur unit,” SP Oswal said while speaking to Business Standard. He has been conferred Padma Bhushan for his business acumen, earlier this year.
He said his company would look into further export destination with this expansion in yarn market. The company also has an apparel fabric and home textile fabric manufacturing unit in the Budni district in the state. “With this expansion we will be the largest in the spinning units industry in the country and probably the biggest job provider by creating 5,500 direct jobs, these two expansions will add another 800 to our total headcounts,” Oswal said, “And interestingly 40 per cent of our production will be in Madhya Pradesh. The logistical advantage in Madhya Pradesh is better than any other state, we found it near the port, cheap available land and accessible labour.” The company, he said, may also mull over starting shirting unit at a later stage. At present it makes shirting cloth at Ludhiana.