| The expansion will double the company's polyester production capacity to 600,000 tonne by September 2005. |
| The company would also invest Rs 90 crore in a power plant at the same unit, O P Lohia, managing director, Indo Rama Synthetics Ltd, said at a press conference here today. |
| "The investment is aimed to gain economies of scale and cater to the fast growing polyester business," he said. |
| "Investment in capital intensive technology makes sense for an already established player to get gains from specialisation, produce the basic fibres on a large scale from separate lines and the specialised products from others," D W Kramer, chairman, Zimmer AG, said. |
| Two new lines of production would increase supply of polyester staple fibre (PSF) and partially oriented yarn (POY) by 400 tonne per day(tpd) each. |
| The company's product portfolio includes PSF, POY, fully drawn yarn and textile grade chips. |
| Last year, the company had hived off its textile spinning to Indo Rama Textiles Ltd. |
| Lohia also said that the company would source PTA from Indian Oil's upcoming refinery once it gets operational in May 2005. |
| He also said the company's sales would touch Rs 5,000 crore in 2005. |
| As per the contract, Zimmer would provide engineering, plant equipment and technical consultancy over 18 months. |
| Half of the project cost would come up from internal accruals, while the other half from loans from German banks such as DEG and IKB. |
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