Sun Ind to invest Rs 40 cr in MP

Ratlam-based Sun Industries Pvt Ltd has planned to invest Rs 40 crore in Madhya Pradesh. The company will manufacture steel wires, plastic products and aluminum and copper cords in different capacities.

"The state government has considered it a mega investment proposal and it will be granted sops according to Industrial Promotion Policy 2004," a government source told Business Standard.

Promoted by Arun Kataria of Ratlam, the company will be a separate unit from the earlier proposed investment of Rs 42 crore in another unit.

"The earlier unit of Kataria Industries Pvt Ltd. will soon be nearing completion. This is another unit proposed by same promoter," the source added.

The Kataria Industries will produce steel wires and plastic products, while Sun Industries will add two new products -- aluminum and copper cords. Sun will manufacture 121,000 meters of steel wires, 14,200 tonnes of plastic products, and 2,400 metric tonnes of aluminum and copper cords.

Since Ratlam has been awarded a C category status, the project has been awarded mega status against the normal mandatory investment of minimum Rs 100 crore.

"State Apex Empowerment Committee on Investment has recently been considered it (Sun's investment proposal) as mega status and it will be offered concessions and exemptions in entry tax, purchase of raw material, investment promotion assistance in the form of interest grant, etc.," the source added.

The Katarias, known for their other businesses like steel fabrication and Sarafa (bullion) business, will complete the unit by next July.

While Kataria Industries will produce 144,000 tonnes of steel wire and 9,600 tonnes of plastic products with the investment of Rs 42 crore.

Both the firms had demanded some concession and exemptions from entry tax on raw material purchase. They had also demanded exemptions from mandi tax, concessions on power cess for a period of 10 years, said the source.

Ratlam, known for its tasty sev and namkeen (Indian snacks), is situated in the north-west part of the state.

It is also known for its copper wire units, plastic rope manufacturers, chemical and pharmaceutical factories like Ipca and few others namely JVL, Hightech, IPCA, Shaba Chemicals, Bordiya Chemicals, Sujjan Chemicals etc. Ratlam Sarafa Bazaar is famous for purity and designs of gold ornaments.