Nakoda Textile Industries, one of India’s largest players in the fully-drawn yarn segment, plans to invest Rs 3,250 million for expanding their production capacity in the coming year.
Addressing media, Babubhai Jain, CMD, Nakoda Textiles Industries, said: “Our continuous polymerisation plant of one lakh metric tonnes per annum (MTPA) will be operational by mid-2009, and will facilitate backward integration of the company.”
The company also plans to add to its POY spinning capacity of 70,000 MTPA. “The entire expansion is likely to be completed by mid-2009, taking the company’s production capacity to 100, 000 MTPA of POY,” said Jain.
Commenting on the developments, Jain said: “This project will eliminate our dependence on outsourced polyester chips and offer better value addition with continuous polymerisation. We intend to fund the project using a mix of equity and internal accruals. It has been our endeavour to ensure enhancement in shareholder value.”
According to an official release, the company has achieved growth of 61 per cent by touching a net profit of Rs 33.19 million in the first quarter of calendar year 2008.