Indo Rama Synthetics has signed a contract with Zimmer AG of Germany to install a 500 tonne per day continuous polycondensation plant for production of polyester staple fibre (PSF) and textile grade chips. This is a part of the company's Rs 600 crore expansion for PSF.
The current project is estimated to cost around Rs 490 crore. Indo Rama is planning to finance the project through a combination of internal accruals and export credits from German banks. The plant is scheduled to go on stream by the first half of 2004.
The polycondensation facility will be the single largest of its kind in the country. The staple fibre facility will have a capacity of 1.45 lakh tonne a year. The balance 30,000 tonne per annum will be utilised for textile grade chips, the company said in a statement.
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Indo Rama recently said the company would consolidate its operations in South Africa and North America. The company would focus on existing markets instead of venturing into new locations. US is a critical market for the company for exports.
It has projected a net profit of Rs 200 crore for the current fiscal compared with 2001-02 net of Rs 41.28 crore. The company is expecting a 7 per cent increase in the demand for polyester during the current fiscal. This would be mainly owing to a boom in non-apparel segment comprising automobiles and industrial applications.
In a bid to expand its market share, the company is also planning to increase the production of fully-drawn yarn and drawn-textured yarn.