New Delhi: Jindal Polyester (JPL), a part of the Rs 1,100-crore BC Jindal group and a leading producer of polyester films in India, is setting up a new polyester film line, together with a polycondensation plant at its existing location in Nasik, with an investment of Rs 150 crore.
The new line with a capacity of 29,000 MT per annum will be one of the largest polyester film lines in the world. The Rs 150-crore project will be financed by an equal mix of debt and equity, where the equity would be generated through internal accruals.
With this expansion JPL's total capacity will increase to 65,000 MT per annum, making it the fifth largest producer of polyester film in the world and the largest in India. JPL's plans to expand capacities are largely a result of the growing demand for BOPET internationally and in the domestic markets. While 50 per cent of its production will be earmarked for the international market, the balance will be for the domestic market.
The 8.7-metre wide polyester film line is being equipped with a state-of-the-art technology provided by the leading German manufacturers and suppliers of equipment, Dornier, Buckner and Kampf. This wide width line is expected to provide economies of scale and will be more cost-efficient than other lines in India.
The plant is expected to commence production by November 2003. Due to the bright prospect for its polyester film business with exports to Europe more than doubling in the last year, the company is looking at a further expansion with another 8.7-metre line soon to reach a capacity of over 85,000 MT per annum.
Says JPL managing director S K Mittal: ''With the international demand for BOPET films growing at over 4 per cent per annum and the domestic demand expected to touch 95,000 tonnes per annum by 2003, JPL is poised to lead the segment, both in the domestic as well as international markets. Our state-of-the art technology will enable us to lower the cost of production significantly, thereby offering a major price advantage to our clients.''
Jindal Polyester is also diversifying into BOPP film production and setting up a line of an initial capacity of 15,000 tpa, with an investment of Rs 100 crore.
The company, continuing on its positive path of growth, has registered a net profit of Rs 30 crore in the first six months of the current year, registering an improvement of 75 per cent over the corresponding period of the previous year. The growth in the half-year has been achieved largely on account of improved margins resulting from reduction in costs and an improved performance in the exports market.