Jan 11: Welspun Group, a $2.3-billion global conglomerate operating in home textiles, line pipes and infrastructure, on Wednesday announced an investment of Rs 4,000 crore for three large textile projects in Gujarat. According to the company, the three MoUs which are being signed during the ongoing Vibrant Gujarat Summit 2017 were announced by BK Goenka, Chairman, Welspun Group at the Summit.
“Our continuous investment in the state is a testament to our long-term commitment to Gujarat. It is our aim to make Gujarat the textile hub of the world. Welspun continues to invest into development of well-researched products and technology of the future and the current investment is in line with this philosophy,” said Goenka.
Out of the total investments, the company will invest Rs 2,000 crore in developing an integrated textile manufacturing zone. This will be a part of the Government of India’s Sagarmala project to modernize the country’s ports, where Kutch is among the first identified key locations. The company aims to develop a large, modern and futuristic textile industrial complex that will manufacture and supply world class textile products for the global markets.
“Welspun will leverage on its expertise in developing industrial infrastructures. The Kutch facility will provide a unique ecosystem for entrepreneurs to set up manufacturing facilities. The project will generate direct employment of nearly 5,000 and will provide indirect employment to nearly 15,000 people,” said Welspun India Ltd in a filing.
Welspun will further invest Rs 1,000 crore in its technical textile business for capacity enhancement, addition of new products and training and skill development. Under this vertical, the company has already made its mark with products for specialized use in healthcare, fire departments and other utilities which include specialized features such as fire retardants, stain resistant, anti-bacterial, PET resistant, and soil resistance, among others. Most of these products are also recyclable.
The remaining Rs 1,000 crore is being invested in the advanced textile arm of Welspun that focuses on manufacturing specialized materials for applications in aerospace, defense and automobile sectors, according to the filing.
The Mumbai-based company has already invested Rs 10,000 crore in Gujarat so far and the fresh investments take total investment to Rs 14,000 crore. Welspun India shares closed trading at Rs 70.55, up 3.14% from the previous closing of Rs 68.40, on BSE today.