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Textile sector to witness Rs 20K cr worth MoUs

Source : BUSINESS_STANDARD
Last Updated: Mon, Jan 07, 2013 19:31 hrs

Despite a shift in focus from inviting investment commitments to knowledge sharing by the Government of Gujarat (GoG), the Vibrant Gujarat Summit 2013 is still set to attract investments in the textile sector to the tune of over Rs 20,000 crore.

According to senior state government officials, biggies in the sector from within and outside the state are either likely to foray for the first time or announce fresh investments for capacity expansions within Gujarat.

"We have already been receiving investment proposals from big and small textile majors which will be announced during the summit. We should easily witness memorandums of understanding (MoUs) in the textile sector to the tune of over Rs 20,000 crore," a senior state government official stated. As per government sources, companies like Arvind Ltd., Welspun India Ltd., Vardhman Group and Oswal Spinning, among others will be signing MoUs for investment proposals for projects in different verticals of the textile sector.

In the current Vibrant Gujarat Summit 2013, the state government has specifically focused on the spinning and technical textile sector, apart from other verticals in the value chain. The spinning industry in Gujarat itself 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 2013. 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.

"The previous Vibrant Gujarat Summit 2011 had seen major investment in technical textile sector for the first time. This has boosted our plans to strengthen the vertical in Gujarat," the official added. During the previous summit 2011 as well, the textile sector had seen investment proposals worth Rs 25,000 crore through close to 140 MoUs. Among these, for the first time, technical textile biggies like TenCate - Geosynthetic and American Hygienics Corporation had signed MoUs in Vibrant Gujarat Summit 2011. While the European major TenCate combines textile technology with related chemical processes to develop specialist and protective materials for fire-fighting clothing, and strong, lightweight materials in aircrafts, Shanghai-based American Hygienics Corporation is one of the leading and fastest growing manufacturers of baby wipes, wet wipe applications and other personal care products in the Far East.

In the previous summit, of the close to 140 proposals so far received by the state government, almost 45-50 were from the spinning sector, 15-20 were from technical textiles, while rest were spread across apparel, weaving and processing verticals, among others.




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