The Chiripal Group is setting up a Rs 500 crore terry towel facility in Ahmadabad. This will begin commercial production from December this year. About 95 per cent of the production will be exported. Once the plant is commissioned, Chiripal expects to achieve a turnover of Rs 400 crores from the plant in the first year of operations.
With its eyes set on the overseas market, the company has chalked out a strategy to market terry towels in the US, Germany, UK, Italy, France, Romania, Australia, New Zealand and Canada, besides other regions. The company hopes to penetrate new markets like Latin America and Africa with the right mix of product and competitive pricing.
It has planned a total investment of Rs 503 crores, of which 70 per cent will be debt portion.
To meet its in-house requirements of textile verticals, Chiripal is also setting up 48,960 spindles for the manufacturing of cotton yarn with an investment of Rs 306 crores. The new spinning facility will help the company increase its turnover to Rs 1,100 crores by the end of fiscal 2016-17. Right now the company has a total turnover of Rs 850 crores.
As part of its business diversification strategy, Chiripal also plans to install 80 airjet looms.