The Hindu Business Line : SRF setting up Rs 250-cr polyester yarn unit in TN

Plant profile
Will have an annual capacity of 14,500 tonnes.
Will position the company to participate in fabric business for radial tyres.
Will enable the company to set its foot into growing V-belt cords market.

Ambarish Mukherjee

Chennai, Sept. 25 SRF Ltd has firmed up plans to set up a new polyester industrial yarn spinning unit with an annual capacity of 14,500 tonnes at its existing Gumminipoondi plant in Tamil Nadu.

The new project would involve fresh investment of approximately Rs 250 crore. The company has also entered into a technological tie-up with Japan-based TORAY for the new plant.

“The move will give us entry into the lucrative area of polyester industrial yarn which has emerged as the most preferred fibre among technical textiles, a rapidly growing area in India,” the Managing Director of the company, Mr Ashish Bharat Ram, told Business Line.

2 yarn types

The new unit would be manufacturing two types of yarns –

high modulus low shrinkage (HMLS) yarn and regular polyester industrial yarn (RPIY).

The HMLS yarn is used to manufacture radial tyres for passenger cars and light motor vehicles.

It is also used by the company for manufacturing V-belt cords that are used for power transmission in automobiles, motors and engines, he said.

Regular polyester industrial yarn is used for making belting and coated fabrics.

Unit’s advantages

The new unit would essentially cater to the captive requirement of tyre cord, belting and coated fabrics at five of its plants in India and abroad and would also enable the company to set its foot into the growing market for V-belt cords.

Expected to begin commercial production by the middle of 2009, it will also position the company to participate in fabric business for radial tyres for the new generation automobiles.

This would be a very large market with constraints on the supply side, particularly in view of the huge expansion plans announced by the leading tyre manufacturers for enhancing radial capacity for passenger tyres, company officials said.

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