The Ludhiana-based group, the world’s largest manufacturer of terry towels and wheat-straw based paper, is reviewing its plan, as per Gupta. “Due to geopolitical developments we have had a rethink on our expansion plans. We are back to the drawing board now,” he told ET.
When asked what parts of the plan have been put on hold, he said, “Due to the US-Iran war, input costs have gone up. There are some other challenges as well, like the technology to be used. We are revisiting these decisions.”
Gupta had committed to the investment in mid-March at the AAP-led Punjab government’s Progressive Punjab Investors summit in Mohali. In his speech, in the presence of AAP founder Arvind Kejriwal and Punjab CM Bhagwant Mann, he had announced the largest investment by a single entity at the summit. “It is a new beginning for Punjab… We are committed to investing ₹5,000 crore over the next 2 years,” he had said.
On April 24, Gupta and six other Rajya Sabha members from AAP quit the party and joined BJP. The chairman of the textile firm, however, denied there was any link between the rethink and his switch to BJP. “This rethink has no link with my political decision. A company keeps only business sustainability and compatibility in mind when taking decisions,” he told ET.
Trident Group’s expansion plan included investment of ₹1,500 crore in Barnala to scale up terry towel production and modernise paper manufacturing facilities and ₹500 crore in Mohali to establish a corporate office and capacity building centre. The overall investment of ₹5,000 crore, as per Gupta, would have generated 10,000 jobs, including 5,000 for women.
Asked whether the company would like to move to another state, Gupta said it was up to the board of directors to decide. His parting of ways with AAP has been anything but amicable. The rethink follows a crackdown by Punjab Pollution Control Board at its Barnala factory right after Gupta’s switch. He moved the Punjab and Haryana HC alleging “political vendetta” and received relief from the court.
