The Hindu Business Line : Sanghi Polyesters to raise Rs 200 cr PE funds

“Initially, most of them were not keen to invest in the textile business as they did not see good returns. But since we have a good land bank which is being developed a couple of them have come forward for further discussions and the deal is likely to be finalised in the next three months,” Mr Siddharth Sanghi, Executive Director, Sanghi Polyesters, told Business Line here on Monday.

Out of the Rs 200-crore, he said, Rs 170 crore will be used to clear debts and the rest for expanding its existing facility for manufacturing value added products.

“Currently, we are into mainly manufacturing partially-oriented yarn (POY). But we see better returns coming from the polyester texturised yarn (PTY). So, instead of serving the intermediaries we are looking at going in for directly producing PTY and sell it to the end users,” he said.

SPL expects to complete installation of machinery and go in for commercial production within the next one year.

The company has an installed capacity of 75,000 tonnes a year and is planning to convert the entire POY it manufactures into PTY. According to Mr Sanghi, currently PTY accounts for 10 per cent of the total installed capacity.

“Last financial year (15 months) with a capacity utilisation of 50 per cent, SPL recorded a turnover of Rs 370 crore. The promoters pumped in around Rs 25 crore so that the capacity utilisation could be increased to around 95 per cent during the current fiscal,” he added.

More Stories on : New Projects | Venture Capital | Textiles

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