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Experienced promoters
with over 40 years of experience in the industry
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Successfully
implemented various expansion schemes
in the past with in-house expertise
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Consistently
achieved capacity utilisation over 90% in respect
of POY in the past
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FIL’s
Dadra unit enjoys certain locational advantageous
such as sales
tax exemption,
Income Tax
deduction u/s 80 IB of the Income Tax
Act, 1961, lower cost of power @ Rs.2.60
/ unit at Dadra Plant and close
proximity to air/ seaports.
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Products are
well accepted in the market
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With
the implementation of the proposed project, the company
will reap
the benefits of economies
of scale
due to optimum
utilisation of the existing
facilities.
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Satisfactory
organisational set-up with experienced and
well-qualified
employees
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Strong marketing
network with low selling and distribution
costs
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The prices of
raw materials and finished goods move in tandem with
international
prices, which, in turn, have
positive correlation with the prices of petrochemical
products.
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A major portion
of the manufacturing capacity originates from second
hand equipment.
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FIL
adopts the technology of spinning POY from polyester
chips which
are an intermediate and
may
put FIL at a
comparatively disadvantages position
due to relatively higher cost vis-à-vis
the other players who manufacture POY
directly from PTA/DMT/MEG. Company is taking planning
to putting up its own captive
poly- condensation facility.
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Debts
of FIL have been restructured under CDR mechanism due
to
which it is bound
by the CDR conditions. However
the company is planning to swaping
its debts of IDBI, ICICI & IDBI
bank with Foreign currency loan which
will also reduce the overall cost of debt of
the company.
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With no major
capacity increase being created in the recent past /
being planned
in the near future, the existing players
are well positioned to take advantage of the
emerging scenario where demand is expected to exceed
supply.
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Potential growth
in exports of POY / PFY. With quantitative
restrictions on textile exports being dismantled
under the aegis of World Trade Organisation (WTO)
from 2005,
it is
expected that low cost producers like India
will benefit.
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With tariffs
proposed to come down in India over a period of time,
it is expected that raw
material costs will be comparable
to those prevailing in the international
markets.
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Potential growth
in domestic demand for POY due to increase in share of
non-cotton
fabric in total fabric
production
on account of lower availability
of cotton, reduction in the excise duty on non-cotton
yarns, and higher
cotton yarn
exports.
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Likely expansion
by large players like Reliance Industries, Indo Rama
Synthetics,
Century Enka Ltd., etc.
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India has concluded
/ is in the process of concluding Free Trade Agreements
(FTA)
with a number of countries
like Sri
Lanka, Thailand, China, etc. This will
lead to lower tariffs all round and may affect Indian
textile
units,
including
FIL.
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Post
WTO, when India would be exposed to international competition.
FIL’s
position is expected to be vulnerable vis-à-vis
those companies with global size
and modern facilities.
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