The Chiripal Group plans to set up a Rs 500 crores terry towel facility in Ahmedabad with 80 airjet looms. About 95 per cent of the production will be exported. The company expects to achieve a turnover of Rs 400 crores from this plant in the first year of operations. The company has a total turnover of Rs 850 crores.
The unit will have a spinning capacity of 24,408 spindles and 960 rotors which will help Chirpal increase turnover to Rs 1,100 crores by the end of fiscal 2016-17. Commercial production will start from December this year.
Chiripal is a vertically integrated group of textile manufacturing companies based in Gujarat. With its eyes set on 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.
To meet its in-house requirements of textile verticals, Chiripal is also setting up 48,960 spindles for manufacturing cotton yarn with an investment of Rs 306 crores. The new facility will come up at Dholi Integrated Spinning Park near Ahmedabad for which the company has acquired 30 acres.
The towel manufacturing unit Nandan Terry will soon be brought under the denim unit of the group named Nandan Denim, thereby making it a diversified textile company.