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The spinning industry in Gujarat is set to witness foray of major North and South Indian players like Vardhman, Oswal Spinning and Cosmo Group as part of the upcoming Vibrant Gujarat Summit.
At an anticipated investment of over Rs 7,000 crore, the summit will see commitments for close to 3 million spindles, exceeding the state government's target of 2.5 million spindles.
According to a senior state government official, it is not only players from outside the state like Vardhman and Oswal Spinning that have evinced interest for setting up spinning units but also within Gujarat.
"Investment intentions have been coming in already for the textile industry. This year the state government's focus is mainly on the spinning industry and we will see ample memorandums of understanding (MoUs) in this regard during the upcoming Vibrant Gujarat Summit 2013 in January. Well known players from within and outside the state are vying to set up spinning units in the state," the official stated.
For the next five years, the state government has set a target of installing 2.5 million spindles, commitments for which it believes will exceed during the summit.
"We have set a target of 2.5 million spindles to be set up in the state in next five years. But we are anticipating MoUs for over 3 million spindles worth over Rs 7,000 crore. Major players from North India like Vardhman, Oswal Spinning and a consortium of 50 spinners from South India under the Cosmo Group have also evinced interest among these," he added.
The state government has also come up with a textile policy with a five 'F' focus including 'Farm to Fibre to Fabric to Fashion to Foreign'.
Earlier in September 2012, Gujarat Chief Minister Narendra Modi had announced Gujarat Textile Policy 2012.
Titled as 'Navi Gujarat Vastraniti', the policy looks to attract investment of over Rs 20,000 crore as well as creating new employment opportunities for over 2.5 million people in next five years.
Gujarat is keen to see at least one lakh spindles being develop every year. With the given resources, it will take, on an average, around Rs 20-25 crore of investment in Gujarat for setting up a spinning unit of minimum 12,000 spindles.