Oswal to set up first plant outside Punjab

Ludhiana-based Oswal group is setting up a yarn-dyed shirt fabric manufacturing project at Kagal, near Kolhapur in Maharashtra at Rs 295 crore.

The plant will have the capacity to make 12 million metres of high-end shirt fabric, which will be exported to Europe, USA and Asian countries.

The group has signed an agreement with the Maharashtra government for the project. The agreement was signed by Ashok Oswal, chairman and managing director of Oswal FM Hämmerle Textiles Ltd and VK Jairath, principal secretary (industries), Maharashtra, in the presence of Chief Minister Vilasrao Deshmukh.

The project is being set up through a joint venture agreement with Austrian fabric maker FM Hämmerle group. The civil work at the site is over and the important machinery and equipment have already arrived at the site.

The company hopes to start commercial production of the weaving unit by September 2007 and the rest of the facilities a month later.

The group had conducted surveys of various states for an appropriate location for its shirt fabric project and based on the proximity to the ports and other positive factors, the group decided to have the facility in Kagal.

"In our effort to have more items in the value-chain, we had decided to enter the weaving activity and were looking for an appropriate location. Kolhapur seemed to be the right choice due to several factors. The project will cost about Rs 295 crore, including the spinning project, and is likely to generate direct employment for about 650 persons, in addition to indirect employment," said Ashok Oswal. This will be the first manufacturing facility of the group outside Punjab.

He added that the group would try to bring further investments and activities into Maharashtra in future.

The group has already planned to set up a dye-house and a shirt making facility close to the present site of the yarn-dyed shirting project at Kolhapur.

Last financial year, the turnover of Vardhman Polytex Ltd, the flagship company of the group, was Rs 385 crore.

The group also has plans to have an integrated facility in the form of spinning, weaving, dyeing and shirt-making in the same or nearby locations in Maharashtra.