Guwahati: Guwahati-based Orient Processors Pvt Ltd, which has a cotton yarn unit, will set up a spun silk unit and a weaving and knitting unit with an investment of around Rs 75 crore.

The company will sign an MoU with the state government on the occasion of Advantage Assam - Assam's Global Investors' Summit here on Saturday and Sunday.

Pabitra Buragohain, managing director of Orient Processors Pvt Ltd, said he was setting up a second unit - Orient Spun Silk and Processing Mills - to overcome the problems faced by silk weavers in the Northeast.

"It has been observed that silk yarn available in the market is uneven, the dyed warp and weft yarn do not match in shades and the colour bleeds on washing. Similarly, eri yarn found in the market is mostly hand spun with traditional appliances. As a result, the yarn spun varies in count, twist and strength and the colour bleeds. The company will produce quality twisted yarn in different denier (a unit of measurement used to determine the fibre thickness of individual threads) which will help weavers to produce quality products of international standard," Buragohain told The Telegraph.

The silk unit will go commercial from April.

The company will install pure silk yarn dyeing machines and silk twisting machines which will be imported from Germany, the UK and the US with the specific objective of providing uniformly twisted yarn to make fast coloured dyed mulberry, eri yarn in hank (a hank is a coiled or wrapped unit of yarn or twine) as well as in package form and muga twisted silk yarn, which in turn will facilitate weavers to diversify the product line, add value and gain access to the export market.

The Ramdhenu brand colour fast cotton dyed yarn, marketed by the company, is popular among handloom weavers in the Northeast.

He said this endeavour will develop the silk industry in the region as, at present, a substantial quantity of raw material goes outside the region without value addition. To fulfil the Make In India initiative, the company will manufacture value-added products to supply to the domestic and export markets.

"The manufacturing of value-added products will generate higher income for the people and provide sustainable livelihood," Buragohain said.

The company is also setting up a composite weaving and knitting unit - Orient Knitfab Pvt Ltd - to produce cotton, mulberry, eri and muga fabric and knitted garments.

Various products can be manufactured from eri fast coloured dyed yarn like shawls, stoles, scarves, knitted sweaters, ties, quilts, jackets, half coat shirts, sarees and home furnishing items like curtains, bed covers and cushions.