Diversified textile player Chiripal Group is setting up a Rs. 500-crore terry towel facility in Ahmedabad district with an initial capacity of 10,696 tonnes per annum. Nandan Terry Pvt Ltd, a wholly-owned subsidiary, will begin commercial production in December, a top company official said.
According to insiders, Nandan Terry will soon be brought under the listed denim unit of the group, Nandan Denim Ltd. The company has chalked out a strategy to market the terry towels in the US, UK, Germany, Italy, France, Romania, Australia, New Zealand and Canada. However, according to a recent DGFT (Directorate General of Foreign Trade) data, India’s exports to these markets have been on the decline, from Rs. 950 crore in 2013-14 to about Rs.727 crore in 2014-15 and Rs. 590 crore in 2015-16 (till February). Nandan Terry expects to reverse the trend by entering new markets such as Latin America and Africa with the right mix of products and competitive pricing.