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Kanoria Chemicals & Industries Ltd has decided to set up a 12-million-metre-a-year denim fabric unit in Ethiopia at a cost $30 million.
The Chairman and MD, R.V. Kanoria, told Business Line that the plant is to be set up within an hour’s drive from the capital Addis Ababa.
The company is close to buying up 50 acres of land for the project, which is scheduled to come on stream by December 2013.
The plant will have spinning (1440 rotors) and weaving (60 looms) units, a dyeing facility and a finishing line. It will provide Kanoria Africa Textiles Plc, Ethiopia, its wholly-owned subsidiary, access to local long-staple cotton, low-cost energy, duty-free access to the US, Canada and the EU and tax incentives.
“This will be the newest and fourth vertical for the company”, said N.K. Nolkha, the company’s CFO.
In the other new vertical — solar power — the company expects its 40 MW project to be ready in phases by some time next year.
“We have invested around Rs 62 crore. We also have acquired 250 acres of land for the project in Rajasthan”, Kanoria said.
In July, Kanoria Chemicals commissioned a 2.5 MW solar power unit. This month, the capacity will to be enhanced to 5 MW. The power produced from the project is to be sold through the renewable energy certification mechanism.
The company recently acquired 90 per cent stake in APAG Holding AG of Switzerland and made an entry into electronic and mechatronic automotive control devices.
After divesting its chloro-chemicals business, the company is left with hexamine-producing facilities in Hyderabad and Ankleshwar with a combined capacity of 11,600 tpa.
>jayanta.mallick@thehindu.co.in
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