Leading polyster maker Indo-Rama Synthetics on Thursday forged an alliance with German construction and engineering company Zimmer AG for its Rs 900 crore (Rs 9 billion) polyster expansion project in Butibori, Maharashtra.
This expansion project aims at doubling the polyster production capacity from 800 tonnes per day to 1,600 tonnes for both polyster staple fibre and partially-oriented yarn.
The company currently produces over 300,000 tonnes of polyster annually, which after expansion would increase to about 600,000 tonnes by September 2005, Indo-Rama Synthetics managing director O P Lohia told a news conference in New Delhi.
"Of the total funding of Rs 900 crore, Rs 450 crore (Rs 4.50 billion) would be generated from internal accruals and the balance will be long-term loans from international institutions like DEG and IKB from Germany and others," Lohia said.
He said the expansion was necessitated as the plant was running at over 100 per cent capacity over the last two years.
"The polyster expansion project is in synergy with our focus on making our operations competitive. We foresee great opportunities for India to take part with the phasing out of quotas from January 15, 2005," Lohia said.
He said production at the new plant would commence by mid-2005 and would be fully commissioned by September 2005.
