Chennai: Leading chemical and textile company GHCL Ltd would invest Rs 500 crore in Tamil Nadu and a memorandum of understanding was signed with the government to this effect, the company said on Saturday.
GHCL CEO (Yarn Division) M Sivabalasubramanian exchanged documents with Guidance Tamil Nadu, Managing Director and CEO, Pooja Kulkarni in the presence of Chief Minister M K Stalin during the Investment Conclave held in Coimbatore recently.
GHCL said it would set up 40,000 ring spindles in Manapparai, Tiruchirappalli district to produce synthetic and synthetic blended yarn to cater to knitting and weaving segments. It would install another 40,000 Ring Spindles with 24 knitting machines in Madurai district to produce 100 per cent cotton yarn and knitted fabrics.
Besides, the company would also develop an Extra High Tension (EHT) power transmission facility in Manapparai, it said.
Under its move towards sustainable business practices, GHCL Ltd has planned to set up a 20 MW solar power park near Musiri in Tiruchirappalli district . Once this 20MW solar power park project gets completed, 70 per cent of the company's requirements would be met for the spinning business through renewable energy.
Currently, 52 per cent of the energy requirements for the yarn business was fulfilled from renewable energy resources, the company said. "We are humbled and proud to be a part of Tamil Nadu's growth story which is befitting our longterm association with the state", GHCL Ltd, Managing Director R S Jalan said. "This MoU, will help us to create value for the community and is in accordance with our strategic growth plans and sustainability targets. Going forward, we will further enhance our energy portfolio to fulfill almost 90 per cent of our energy requirements from renewable sources."