Sarda Group plans to setup jute mill in
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
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