Indo Rama plans capacity expansion
By A Business Correspondent
Indo Rama Synthetics, the largest producer of polyester in the country and the 10th largest in the world, plans to invest Rs 600 crore by the year 2004-05 towards capacity expansion of its production of polyester, fully drawn yarn and DYT.
The brownfield expansion of 500 tpd of polyester will increase the company's market share from the current 20 per cent to 25 per cent. The company's cost per tonne in the project will be $590 as against $1,800-2,000 per tonne in a greenfield project. Indo Rama will tap an equal amount from internal resources and market borrowings to fund the project. Borrowings in foreign currency loan would be less than Rs 300 crore. The company hopes to pay an interest rate of 3-4 per cent on the loan with a payback period of four-five years.