Rs 3,500 crore boost for spinning capacity in Gujarat

Riding on good revenues of the past two years and higher profit margins, spinners across Gujarat are bullish about augmenting manufacturing capacities for cotton yarn. 

Estimates of Spinners Association (Gujarat) or SAG suggest that an investment of Rs 3,500 crore is on the cards over the next year and a half, as 7 lakh new spindles will be added in Gujarat to boost the spinning capacity in the state.

Unprecedented profit margins were recorded last year. Therefore, many of these spinning mills have planned expansion.

In fact, at least 10 new spinning mills are also expected to start operations during this period, according to SAG estimates. 

Gujarat is home to about 110 spinning mills with an installed capacity of 45 lakh spindles. 

Most of these mills were set up only after the Textile Policy of 2012 was implemented, rolling out incentives for yarn makers.