Nakoda Ltd, a polyester filament yarn producer, plans to double its polymerisation capacity to 280,000 tonnes a year with an investment of Rs 1,935 crore over three years.

The company proposes to raise debt of Rs 1,550 crore through term loans. The remaining investment amount will be funded through internal accruals. The new capacity addition will be made to the company's existing plant at Surat in Gujarat.

Mr B.G. Jain, the company's Chairman and Managing Director, told Business Line that the project, when complete, will enable Nakoda to supply the entire range of polyester yarns in the domestic and international markets.

“The company currently has a debt of Rs 300 crore and the loan repayment has already started last year with the first instalment of Rs 45 crore. A similar amount will be paid this year,” he said. The company has Rs 135 crore from its GDR proceeds which will be utilised for its expansion.

Nakoda currently has a capacity to produce PET (polyethylene terephthalate) chips of 50,000 tonnes a year , POY (partially oriented yarn) of 30,000 tonnes and FDY (full draw yarn) of 60,000 tonnes. It also has texturising facility of 30,000 tonnes.

CRUDE IMPACT

Last year, the petrochemical industry was impacted by the repeated hikes in lending rates, high volatility in exchange rates, the choppy stock markets, rising petroleum prices and delay in implementation of Government policies. These factors, coupled with the tsunami in Japan and the financial crisis in the Euro zone, have depressed the global markets, affecting the Indian industry, said Mr Jain.

“We look forward to the Government policies to stabilise the petroleum product prices. This is necessary in view of US pressure to cut down imports from Iran,” he said.

>suresh@thehindu.co.in

Related Topics
comment COMMENT NOW