Soon after scrapping of Article 370 by the government, investors’ perception about Jammu and Kashmir has changed overnight. Hordes of entrepreneurs have expressed their interest to set up units in J&K. At this rate, it may soon become investor’s favourite destination in India. Latest one to join the list of entrepreneurs planning to set up units in J&K is Trident Ltd, a paper cum hometextiles manufacturer.
Trident Group Chairman Rajinder Gupta, in an interview to a TV news channel has said that he planned to invest Rs 1,000 crore in Jammu and Kashmir to help develop the state. According to Gupta, he has a blueprint in place, and has identified sectors and small scale industries that he would invest in. He also said that women empowerment was the priority with this initiative, and that 10,000 families are expected to benefit from the investment.
It may be recalled here that recently as part of Trident Vision 2025, the company had announced first leg of Rs 1140 crore capex to add 100% cotton yarn with a capacity of 48.5 mn kgs p.a. (1.6 lakh spindles/3,600 rotors). The current yarn capacity is a mix of mostly coarser yarn of 20-22 count used for towels and yarn with 60-120 count used for sheets. At current utilisation of 49%/63% for towels/sheets, 70%/90% of yarn is from captive sources, while the rest is purchased. Through this massive capex Trident will be moving towards self-sufficiency in coarser counts 20-22 utilised in bath segment and will meet shortfall in higher counts (60-120) for bed segment at peak utilisations. The capacity expansion project is expected to be commissioned by January 2021 and will be financed by Rs 860 crore debt (amended TUFS loan of 6-7%) and Rs 290 crore internal accruals.
However, while making the announcement about Trident Vision 2025 J&K was still enjoying special status.