Kolkata-based Lux Hosiery Industries is planning to set up a spinning unit in Gujarat and is scouting for land for the proposed project, according to government sources.
“Yarn is a major raw material for Lux Hosiery and Gujarat has also been promoting spinning to strengthen the textile value chain. Lux Hosiery is, therefore, keen on investing in Gujarat for setting up a spinning unit. While the company is in talks with the state government, it is yet to firm up its plans,” said a senior government official.
The company is believed to be looking at a capacity of around 100,000 spindles at an investment of Rs 250-300 crore. If set up, the spinning unit would help Gujarat raise the capacity by 400,000-500,000 spindles, which the government is targeting in the next 4-5 years at an investment of Rs 900-1,000 crore. Company spokespersons, however, could not be contacted.
On its part, the Gujarat government has been emphasising on fresh investments in the spinning and apparel verticals. “For decades, regions like Tirupur, Bhiwandi and Coimbatore have been at the helm of the spinning and apparel verticals in spite of frequent power cuts and water shortage. Now, the state government is also encouraging investment queries in spinning and apparel verticals,” said the official.
Gujarat is keen to see at least 100,000 spindles being developed every year. With the given resources, it will take, on an average, Rs 20-25 crore of investment in the state for setting up a spinning unit of minimum 12,000 spindles.
“The government aims at ensuring setting up of at least 100,000 spindles per annum over the next 4-5 years to strengthen this vertical in the whole textile value chain. In order to attract players, the government is emphasising on ready availability of cotton, uninterrupted power supply and stable wage rates. The government is also encouraging existing textile companies in the state to set up or expand captive spinning units,” the official added.
