Based in Gujarat, Chiripal Group – India’s leading textile player – is going to set up a terry towel unit with an investment of around Rs. 500 crore in Ahmedabad, where it has acquired 30 acres of land at Dholi Integrated Textile Park, reports Business Line.
“We have planned a total investment of Rs. 503 crore, of which 70 per cent will be debt portion. The financial closure has been achieved and we expect commercial production to start from December this year. About 95 per cent of the production will be exported. Once commissioned, we expect to achieve a turnover of Rs. 400 crore from this plant in the first year of operations,” Vishal Chiripal, Director, Chiripal Industries told Business Line.
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Nandan Terry Pvt. Ltd. – wholly-owned subsidiary of Chiripal Group – will commence production at the facility by the end of this year. It will install 80 Airjet looms with a towel manufacturing capacity of 10,969 tonnes per annum, with room to double the capacity in future. The unit will also have a spinning capacity of 24,408 spindles and 960 rotors. The company will market its terry towels in markets like US, Germany, UK, Italy, France, Romania, Australia, New Zealand, Canada, among others.
In another development, Chirpal Industries, which has an annual turnover of Rs. 850 crore, is setting up 48,960 spindles for the manufacturing of cotton yarn at Dholi Integrated Spinning Park with an investment of around Rs. 306 crore. The facility is expected to increase company’s turnover to Rs. 1,100 crore by the end of fiscal 2016-17.
