Filatex India today said it proposes to put up manufacturing facilities of 100 MT/day of Polyester Fully Drawn Yarns at its existing unit at Dahej, at a cost of Rs 100 crore, to ramp up long-term profitability.
"The company, in order to increase its profitability on long-term basis, proposes to put up manufacturing facilities of 100 MT/day of Polyester Fully Drawn Yarns at its existing unit at Dahej.
"This will lead to lower per tonne capital cost which in turn will put the company to a recurring advantage by way of lower depreciation and interest," Filatex India said in a BSE filing.
Also, other fixed expenses like staff cost and factory overheads, would also be spread over bigger production volumes leading to improvement in profitability, it added.
The company further said that total capital expenditure for implementing the expansion programme is about Rs 100 crore, adding that it has already made the financial closure with its bankers.
"It is expected that the trial run will commence by end of March, 2016," Filatex India said.
