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More firms looking at Telangana’s textile sector

Dialogues are on with 12 to 13 potential investors to set up manufacturing units

By S. Sandeep Kumar

Updated On - 12 July 2021, 12:42 AM

More firms looking at Telangana’s textile sector — Representational Image

Hyderabad: The textile sector in Telangana is poised for a major thrust that would place it on a different orbit with more than a dozen companies in serious dialogue with the State government on investments to set up their manufacturing units in various parks across the State.

If Korean textile giant Youngone Corporation provided the trigger with its decision in April to set up manufacturing units and start operations at the Kakatiya Mega Textile Park (KMTP) within six months, the announcement by Kerala-based Kitex Group, the world’s second largest manufacturer of kids’ apparel, to invest Rs 1,000 crore for establishing manufacturing units at KMTP is expected to serve as a major impetus. Many national and international companies are now looking at Telangana to set up their units.

“Dialogues are on with 12 to 13 potential investors and the discussions are in different stages. While talks with some companies are in final stages, the rest are in the initial and mid-level stages,” a senior official from Handlooms and Textile Department told Telangana Today.

Since State formation, the State government has accorded top priority to the development of textiles and apparel sector. In the last few years, there has been a steady inflow of investments from various companies to set up their units in different textiles parks across the State, the official pointed out.

Early this year, the Department of Handlooms and Textiles signed a Memorandum of Understanding (MoU) with Gokaldas Images Private Limited (GIPL) for setting up a 500-machine garment factory in Sircilla. The plant will manufacture knitted inner-wear for export employing 1,100 persons, of whom about 75 per cent will be women. Established in 1978, GIPL is one of the first garment exporters from India. The company has 15 factories across the country and employs more than 10,000 persons.

After its first investment of Rs 1,150 crore at Chandanvelly in Rangareddy for carpet tiles manufacturing, US conglomerate Welspun Group made its second investment of Rs 415 crore for an advanced textiles project. The plant will use non-woven technologies to manufacture high performance innovative material including personal protection, medical disposables, hygiene, cosmetic, coating substrate and others. The plant will be commissioned by September 2021.

Ganesha Ecosphere, which is into extracting fibre from used PET bottles, commenced construction works at KMTP. The company is setting up two projects under two subsidiaries Ganesha Ecotech Private Limited and Ganesha Ecopet Private Limited. Ganesha Ecopet will set up a recycled Polyester Filament Yarn plant with an investment of Rs 300 crore in 30 acre employing over 500 persons. The plant will be operational by October 2022. Ganesha Ecotech will set up a washed PET flakes and polypropylene fibre plant with nearly Rs 200 crore investments in 20 acre and employ over 500 persons. The plant will be operational by June 2022.

After commissioning the first weaving unit in November 2019 at Whitegold Spintex Integrated Textile Park in Ibrahimpatnam, Divya Textiles commenced three additional units during the 2020-21 financial year. Five more units are under construction. The line of activity will be primarily weaving, garments and technical textiles.

There were some disruptions in execution of works at developmental projects in Warangal and Sircilla due to Covid-related lockdown during summer last year. But works at Apparel Park, Weaving Park and Common Facility Centre at Sircilla and KMTP picked up pace later in the year. A few important projects in Chandanvelly, Rangareddy were flagged off during the second half of 2020-21.