 "SRF to invest $58 million to set up new plant at Indore")
SRF Limited, a leading producer of biaxially-oriented polyethylene terephthalate (BOPET) film, plans to invest around $58 million to set up a Greenfield BOPET plant at Indore, Madhya Pradesh. The proposed investment will be backed by International Finance Corporation (IFC).
The proposed facility is set to have a capacity of 30,000 TPA and a metallization capacity of 8,000 TPA. Its existing capacity in India is of 60,000 TPA, while it is 28,500 TPA in case of Thailand. The proposed new facility will have a capacity of 30,000 TPA and metallisation capacity of 8,000 TPA.
Of the total investment, World Bank's investment arm IFC is considering financing up to $40 million. The balance will be financed by SRF’s contribution, according to IFC's disclosure.
The project aims to create 100 direct jobs and similar number of indirect jobs in ancillary units and supply chain.
In 2012, IFC-financed SRF's Greenfield projects in Thailand and South Africa which supported company's foray into new markets. The current proposed investment, which complements these earlier investments, will further strengthen the relationship as IFC and SRF continue to engage on new opportunities both within and outside India, the World Bank’s investment arm said.
SRF Ltd, a listed entity, has interest in technical textiles, chemicals & polymer and packaging films. The company has existing operations in Madhya Pradesh, Rajasthan, Uttarakhand, Tamil Nadu and Gujarat.
More than 60% of the proposed project output of flexible packaging will be used in the food packaging and beverages industries. The project will thus support the expansion of processed foods industry and enhance food security by reducing food spoilage.