New Diamond to set up wool unit in Amritsar

Amritsar-based New Diamond Woollen Mills is coming up with a state-of-the-art integration unit near Majitha Bypass Road (Amritsar), with an initial investment of about Rs 4 crore The unit is likely to be operational early next year.

Spread over an area of 40,000 square feet, the capacity of the new unit, with fibre-dyeing, spinning, weaving and processing capabilities, will be about 2.5 million metres per month.

The company manufactures woollen melton fabrics, tweeds, overcoating fabrics, jacketing fabrics, and many other exclusive fabrics. Currently, the company has three units engaged in spinning, dyeing and weaving, having a total capacity of around 400,000 metres per month.

Speaking to Business Standard, Director Vibhu Mehra said, "The initial investment for the new project will be about Rs 4 crore, which will be subsequently stepped up."

Mehra said, "We will abide by the ISO and other international standards for production. Our plan includes developing specific software for operational purposes, and hiring consultancy services for the management services of the company."

"In 2007, we will go public in all probability, but right now it is too early to say anything about the issue size. We are planning to retail garments and fabrics. Also, we are planning to venture into the hospitality industry," he said.

Mehra said, "With a capital investment of about Rs 10 crore in the next financial year, we are planning to increase the capacity of our garment house, which is based in Delhi, by almost three times""from the current 100,000 units per year to 300,000 units per year."

"Our main focus is on developing fabrics as per Italian standards, so that they can serve international demands and quality requirements," he added.

The turnover of the company in the last financial year was Rs 40 crore. In two years' time, with enhanced capacity and modernisation, the company is eyeing a turnover of Rs 60-65 crore. The company exports to the US. Australia is also emerging as a big market, according to Mehra.

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Expansion spree

The capacity of the new unit will be about 2.5 million metres per month

Currently, the company has three units, with a capacity of 4 lakh metres per month

Capacity of garment house to be increased from the current 1lakh units per year to 3 lakh units per year