Financial Daily from THE HINDU group of publications
Tuesday, Oct 05, 2004
Financial Daily from THE HINDU group of publications Tuesday, Oct 05, 2004 |
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Corporate
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New Projects Raj Rayon plans Rs 150-cr expansion Our Bureau
Mumbai , Oct. 4 RAJ Rayon, a Mumbai-based polyester texturised yarn (PTY) manufacturer, is planning a Rs 150-crore expansion of its existing facilities and setting up a POY (partially oriented yarn) unit to aid backward integration of its operations. The unit will have an installed capacity of 30,000 tonnes and would be ready by March 2005. According to Mr Gourishankar Poddar, Chairman and Managing Director, Raj Rayon Ltd, its raw material requirement comprises POY and the setting up of the unit will not only stabilise the supply of the raw material but substantially reduce costs. For instance, if the POY is being bought at Rs 85 per kg and is being sold at Rs 100 per kg, the new unit will ensure that the cost of the POY is down to Rs 66 per kg, thereby raising the profit bar. Mr Poddar said that while the company had its hands full with domestic orders, it had recently executed a few short-term export orders. Now, it is planning a full-fledged foray into the export market in 2005. Mr Poddar said the company is seeking about Rs 150 crore from financial institutions, internal accruals and a public/ rights issue. The funds are intended to double the capacity of the POY unit to 60,000 tonnes per annum (tpa), and increase its PTY capacity from 25,000 tpa to 60,000 tpa.
More Stories on : New Projects | Textiles
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