The Hindu Business Line : Sintex plans Rs 410-cr expansion

Sintex Industries, a plastic tanks and textiles manufacturer, has chalked out a Rs 410-crore expansion plan that will be implemented over four years, starting with the current fiscal.

Of the amount, Rs 180 crore is to be invested in textiles and Rs 230 crore in the plastics division.

The expansion in the textile division is to be funded through borrowings under the Technology Upgradation Fund (TUF) scheme, while and the plastic division expansion will be funded by internal accruals.

The textile division currently has an annual capacity of 21 million m. In phase I of the expansion, it will be expanded to 24 million m and in phase II, this capacity will be further enhanced by five million metres to bring the total capacity to 29 million m by 2008-2009.

The company is also planning to foray into the high-end women's shirting segment and is setting up a new garmenting facility to be commissioned by September 2007.

"We have a significant presence in men's shirting in high-end structured fabrics globally through our joint ventures in Italy and the UK. Our expansion from 21 million m to 24 million m is aimed at enabling Sintex to enter the high-end women's shirting segment which enjoys considerable potential both globally and domestically," a release quoted Managing Director Mr Amit Patel as saying.

In the plastics division, the company plans to invest Rs 110 crore towards expanding its pre-fabricated structures capacity and Rs 70 crore towards increasing its electrical accessory manufacturing capacity. The remaining Rs 50 crore will be routine capital expenditure.

In addition to these investments, the company will spend Rs 110 crore to set up plants at Nagpur and Kolkata at an estimated cost of Rs 55 crore each.

The Nagpur facility is expected to be commissioned by November 2006 and the one at Kolkata by September 2007.

The company's scrip rose 2.08 per cent to close at Rs 174 on the BSE on Monday.

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