The Hindu Business Line : ETL Infrastructure joins hands with IL&FS for textile park in Coimbatore

THE Chennai-based ETL Infrastructure Services Ltd, which has proposed to develop a home textiles park in Coimbatore, is to pair with Infrastructure Leasing and Financial Services Ltd (IL&FS) for the project implementation.

ETL is in the process of setting up a special purpose vehicle (SPV) company for the home textiles project, which is to be developed on about 300 acres. ETL is also in discussion with IL&FS on the terms of equity participation in the proposed SPV, according to Mr S. Thiagarjan, Chief Executive Officer of ETL.

The ETL CEO in a communication to Business Line said the proposed park envisages creation of common infrastructure such as land, buildings, water and effluent treatment plant with reverse osmosis equipment needed for the home textile manufacturing activity. The park would also house common design and quality control centre, conference hall, showrooms and dormitories for workers and captive power plant and co-generation facilities for steam generation.

Rs 700-cr investment: Besides an infrastructure investment of around Rs 150 crore, the total investment to be made into the park project is expected to be around Rs 500-700 crore. The units to be located in the park would include modern cotton yarn production facilities, weaving sheds with shuttleless looms, processing house and finishing lines (automated confectioning lines). To start with around 30 or so units are expected to be located at the park. The ETL, which is said to have initiated the process for acquiring the needed lands for the project, has chosen not to disclose the location of the proposed park project, which, according to officials of the ETL, will be within the 50-kms vicinity of Coimbatore.

SEZ status: The promoters of the project are planning to secure the special economic zone status for the project whose final export production value is anticipated to be around Rs 1,000 crore. The combined production capacity of the units to come up in the park area will be some 350 million bedsets per annum initially.

Integrated facility: According to Mr Thiagarajan, the park is set to address the existing lacunae in creating integrated home textile production facility in the country as India still lacked larger production facility of the scale demanded by the importers. Besides bedlinen and home textile products, the integrated production facility in the proposed park would also facilitate production of table-linen/made-ups and woven apparels as well.

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