The Hindu Business Line : Indo Rama in tech pact with Zimmer AG for expansion

POLYESTER manufacturer, Indo Rama Synthetics (I) Ltd (IRSL), has announced plans to double polyester production capacity at its Nagpur facility from the existing 800 tonnes per day (TPD) to 1,600 tpd by September 2005.

For this purpose, the company has embarked on a Rs 900-crore expansion project.

"We have entered into a technical tie-up with Zimmer AG for this expansion project. Indo Rama Synthetics will close the current fiscal with turnover of Rs 2,400 crore. In the first year after completion of expansion i.e. 2006-07, we hope to register annual turnover of about Rs 5,000 crore", Mr O.P. Lohia, Managing Director, IRSL told newspersons here.

About 50 per cent of the project cost is being funded through internal accruals of the company. The balance will come through borrowings — mainly suppliers credit from German institutions like DEG and IKB.

After the expansion is completed, Indo Rama Synthetics will have a capacity to manufacture 3 lakh tonnes of polyester staple fibre (PSF) per annum at its Butibori facility in Nagpur. The current capacity for manufacture of PSF at Butibori is 1,40,000 tonnes per annum. Further, the capacity for partially oriented yarn (POY) is expected to double to 2,10,000 tonnes per annum.

Mr Lohia sees the phasing out of quotas by January 2005 as an "opportunity" for India to boost textile exports.

More Stories on : Alliances & Joint Ventures | Textiles

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page