Indo Rama Synth ties up with Zimmer AG

Indo Rama Synthetics signed a technical collaboration with Zimmer AG of Germany for its Rs 900 crore polyester expansion project at Butibori in Maharashtra.

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.