Packaging films producer Vacmet India is to invest close to Rs15.8bn ($238.8m) in a new production plant in Dhar district in the state of Madhya Pradesh, a move that will create over 8,000 jobs.
The company laid foundation stone of the facility, which is spread over an area of around 65 acres, as reported by Business Standard.
The proposed facility will be developed in a phased approach and all the three phases are expected to be completed in the next five years.
Phase I of the plant will be completed by January 2017.
Upon completion, the plant will produce biaxially oriented polypropylene (BOPP) films, which will be used in food packaging, industrial packaging, labeling and electrical insulation.
Commenting on the development, Madhya Pradesh Chief Minister Shivraj Singh Chouhan was quoted by The Times of India as saying: "Agriculture has its own limitations and cannot fulfill all the requirements. For the growth of state it is necessary that industries should come and invest in state.
"Our aim is to create huge employement in state so that we can stop migration of the youth population. Ujjaini will be now developed as the new industrial hub of state."
Vacmet currently operates four BOPP film production plants at Chhata near Mathura. The company exports its products including BOPP film, polyester and speciality coated films to about 80 countries.
It also operates a wholly owned subsidiary in London, the UK to cater to its European customer base.