Sarda Group plans to setup jute mill in Tamil Nadu

Kolkata (PTI): The Sarda Group on Thursday said it has acquired a 120-tonne capacity jute mill in Kanpur belonging to G H Singhania's JK Group at the cost of Rs 35 crore.

"We have acquired JK Jute Mills in Kanpur. The mill was closed for about two and half years. We have acquired 92 per cent stake in the company and will go for an open offer shortly in the company listed in the local bourse," Sarda Group chairman Ghanshyam Sarda told reporters here today.

The total acquisition cost was Rs 35 crore, including liability totalling Rs 25 crore.

With this acquisition, the group will now have 10 jute mills and the total capacity of the group will go upto 560 ton per day, he said.

Sarda said he expected the mill to be be up for commercial production from May-June this year.

"We will retain all the 4,500 workers associated with the mill," he said.

The Rs 2,000-crore group has mills in Bihar, Andhra Pradesh and Bangladesh. A greenfield jute mill had been under construction in Alwar, Rajasthan with an investment of Rs 70-80 crore.

"The Rajasthan mill will be up for production from March this year," Sarda said.

The group has been evaluating setting up another greenfield jute mill in Tamil Nadu.

"There is lot of scope for business. Tamil Nadu government buys jute products worth Rs 100 every year. We are negotiating for incentives," Sarda said.