Ahmedabad, April 25 (KNN) The Spinners’ Association Gujarat (SAG) has estimated that the spinning mills will attract a probable investment of Rs 3,500 crore in the next year and a half.

This will add 7 lakh new spindles in Gujarat enhancing the spinning capacity in the state.

Owing to the high profit margins and good revenues of the past two years, spinners across the state are confident about expanding their manufacturing capacities for cotton yarn.

About 10 new spinning mills are also expected to start operations during this period as several spinning mills plan to expand, said the association.

Talking about the likelihood of expansion, Saurin Parikh, President, SAG said, “Yarn makers can get better margins as cotton prices are high. We expect a good demand and enhanced business.”

Many spinning mills have expansion on the cards and as a result approximately 7-10 lakh spindles will be added over the next 18-24 months, he added.

There about 110 spinning mills with an installed capacity of 45 lakh spindles in Gujarat which were established after rolling out incentives for yarn makers through the implementation of Textile Policy of 2012. (KNN Bureau)