Vertex to set up Rs 512 cr plant

Vertex Spinning Limited (VSL), a Madhya Pradesh-based acrylic yarn and mink blanket manufacturer, is setting up a mega cotton spinning mill in Dhule, Maharashtra, with an investment of Rs 512 crore.

The plant, with a total capacity of 1.60 lakh spindles, would be completed in two phases. The first phase will house 80,000 spindles and will produce 12,000 tonne of acrylic cotton a year.

With an investment of Rs 300 crore, the first phase is slated to begin commercial production by March 2007. The construction has already started and is expected to be complete by February.

The second phase, with an investment of Rs 212 crore, would house another 80,000 spindles and produce 12,000 tonne of acrylic cotton a year. The commercial production of the second phase is set to start by November next year.

"Earlier, the plant was planned for Bhopal. But unavailability of cotton there has led to shifting the plant to Dhule. Dhule is rich in cotton and houses a number of spinning industries," said Suresh Sharma, managing director of the company.

The company would be operating at 60 per cent capacity in the first year of operation and it would be fully operational by the end of the first year, said Sharma.

With the commissioning of the Dhule plant, Vertex would become one of the top-three acrylic blanket manufacturers in the world.

The company proposes to secure a term loan of Rs 152 crore from various banks and financial institutions.

Besides, it also has plans to raise Rs 135 crore from the equity market. In addition, Rs 45 crore would be infused as the promoters' contribution to share capital.