Nandan Denim Limited, India’s leading denim manufacturer, recently announced that its application for sanction of various incentives such as VAT/GST, Interest, Power, under the Gujarat State Policy, 2012, has been approved.
Under the mentioned policy, the company is entitled for interest subsidy ranging between 5-7 per cent and power subsidy of Re 1 per unit consumed. They are also entitled for a refund of GST and VAT at 2.5 per cent for the sales made in Gujarat.
Nandan Denim aims on saving Rs 65 crore on account of Interest and Power subsidy over a period of five years, starting since December 2016. In addition to this, the company will also get GST/VAT refund up to Rs 340 crore for a time span of eight years starting from December, 2016. The potential savings from the policy benefits will add-up to the company’s existing bottom line.
The Gujarat State Policy, 2012, was formed with an aim of creating jobs in the textile sector and accelerate the textile development in the state.
Deepak Chiripal, CEO, Nandan Denim Limited said, “We are thankful to the state government for accepting our request and giving the necessary sanctions. With this announcement, the company expects to have substantial inflows in the coming years. The move will further enhance Nandan Denim’s position as a formidable force in the Indian & Global Textile Industry.”
It is worth noting that for the fiscal ending March 2018, Nandan Denim had clocked a net profit of Rs 47 crore on revenues.
Nandan Denim is India’s largest and world’s fourth largest integrated denim fabric maker.