The Hindu Business Line : Abhishek Industries plans Rs 963 cr capex

Plans ahead
Company has acquired 700 acres near Bhopal to set up agriculture extension cum contract farming hub.
A textile unit with 2 lakh spindles and 400 looms is also planned.

Suresh P. Iyengar

Mumbai, Nov. 29 Abhishek Industries, the flagship company of the Rs 1,500-crore Trident group, has chalked out a Rs 963-crore investment plan to set up an industrial-cum-agro-technology project in Madhya Pradesh.

The company recently acquired 700 acres at Budhni, near Bhopal, where it plans a modern agriculture extension cum contract farming hub, besides a textile unit with 2 lakh spindles and 400 looms.

“We will invest Rs 813 crore in the textile venture and Rs 150 crore on the farm front. Of the total outlay, about Rs 320 crore will be from internal accruals and the rest through debt,” said Mr Rajeev Gupta, Chief Executive, Trident Group.

Textile venture

Two lakh spindles will be set up with an investment of Rs 550 crore in two phases. And, in the third phase it will set up 400 looms at Rs 163 crore investment. The first phase will be operational by March 2009. The company has a spinning-cum-textile facility comprising 1,25,952 spindles in Punjab.

“Together with the Madhya Pradesh facility, the group spinning capacity will be 180 tonnes per day placing the company amongst the top three yarn manufacturers in India,” he said.

Currently, the Trident Group has a business portfolio which includes products ranging from terry towels, non-terry products, yarn, writing and printing paper and chemicals. The group exports to over 40 countries in Europe and US.

Farm front

On the agriculture front, the company plans to establish facilities for production, post-harvest handling, transportation and processing for farm products. The produce will be graded, sorted and marketed within the country and abroad with value additions.

Budhni, on the banks of Narmada River, has ample water supply and is well connected by rail and road, the company said.

“Trident will become the hub for procurement of the produce of local farmers that will increase not only productivity but also their profitability. The unit will create direct employment for nearly 3,000 people,” said Mr Rajinder Gupta, CEO & Managing Director,

More Stories on : Diversification | Contract Farming | Textiles

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