Omkar Textile to set up Rs 5-cr unit

Amritsar-based Omkar Textile Mills is setting up its new export-oriented unit with an initial investment of Rs 4-5 crore. The unit will manufacture sulphonic acid and its derivatives, which would be consumed by the blankets industry.

The new unit will have a production capcity of 10 tonnes of sulphonic acid per month. Talking to Business Standard, propreitor, Ajay Khanna said, "We will set up the new unit in the special economic zone(SEZ) in Punjab, or some other place where excise and taxation benefits from the government will be available. Only then, we will be able to compete with the rest of the world and increase our presence in overseas market." The new unit will be an export-oriented unit.

Khanna is going to Italy to acquire first-hand knowledge of operations there, as the new unit will have partly imported and partly indigineous machinery. He is hopeful that once trade begins between the two countries, export of sulphonic acid and its derivative will be to the tune of Rs. 1000-1200 crore.

At present, Pakistan imports these chemicals from Korea and other countries. He added that there was a huge potential in Pakistan, as there was hardly any manufacturer there.

When asked whether Pakistan would allow the import of sulphonic acid from India, he said, "There is strong demand from industralists operating there to add sulphonic acid and its derivations on the positive list of imported items from India."

This year the company is expecting a turnover of Rs 70 lakh. Besides Pakistan, the firm also plans to export sulphonic acid to South African countries.

At present, the unit is catering for the demands of the blanket industry in Punjab and Haryana.

Khanna said once exports to Pakistan and South Africa were started and the two units ran at full capacity, the firm was hopeful to achieve a turnover of Rs. 40-50 crore by 2007-08. Initially, the company was started as a textile manufacturing unit, but later on diversified into a sulphonic acid manufacturer.