Gupta Synth to diversify

Surat-based, synthetic yarn manufacturer Gupta Synthetics is all set to diversify into the production of tyre raw materials. The project will come up at the company's existing unit at Silvassa at an investment of Rs 223 crore.

"We want to bridge the wide demand-supply gap in the nylon tyre cord fabric segment in the country," said Sunil Gupta, director, Gupta Synthetics.

At present the country's annual requirement of the cord fabric is 130,000 tonne and industry gets only 70,000 tonne, he added.

Gupta Synthetics, a part of Gupta group, will go in for manufacturing of nylon tyre cord fabric (NTCF) and nylon filament yarn (NFY), the key inputs in manufacturing of tyres.

Each will have a capacity of 8,128 tonne per annum. The NFY project will start operations by October 2007, while the NTCF part will go on stream by March 2008.

"We have spoken with players like MRF, Ceat, Apollo and J&K tyres. Once we start production. it will be sent for trial run and if everything goes as planned, company will immediately go in for further expansion," Gupta added.

"Capacity additions will be done once the trial tests are successful," he said.

With the projects going on stream within one-and-a-half-year time, the group expects to touch a turnover of Rs 700 crore by FY09.

In the current financial year, it is estimating to reach a turnover of Rs 350 crore, up 24 per cent against last year's Rs 282 crore.

The group has integrated operations in the man-made textiles segment. It has its textile polymer and filament yarn manufacturing facilities at Ahmedabad, Silvassa and Surat.