CHANDIGARH: Textile major Nahar Grouptoday said it will invest Rs 1,500 crore in ramping up its spinning and denim capacities in Punjab, a day after state government announced new industrial policy offering a host of incentives.
"We have chalked out a plan to invest Rs 1,500 crore on expansion in Punjab," Nahar Industrial Enterprises Vice Chairman & Managng Director Kamal Oswal told PTI here.
As per expansion programme, the company plans to install two lakh new spindles at its yarn manufacturing facilities at Larlu in Mohali and at Jodhan and Malerkotla in Ludhiana district.
Nahar Group has current capacity of 8 lakh spindles. Besides, the Nahar Group will also double its denim manufacturing facility by expanding the capacity by 20 million meters per annum in Ludhiana.
The company has current denim capacity of 20 million meters per annum.
"The new capacity in spinning and denim will come up in next 2-3 years," he said.
Post expansion, Nahar Group is eyeing additional turnover of Rs 2,000-3000 crore. "Currently, our group turnover is about Rs 6,000 crore. The new expansion will add Rs 2,000-3000 crore more (in topline)," Oswal said.
Nahar Group will fund its expansion programme with the mixture of debt and internal accruals.
Punjab government yesterday announced a new industrial policy in which it promised to offer exemption of VAT from minimum of 50 per cent to maximum of 80 per cent for new manufacturing including integrated textiles sectors.
Besides, there will be 100 per cent exemption from payment of stamp duty, electricity duty and property tax and 75 per cent in payment of Central Sales Tax (CST) to new units and expansion projects.