WHAT'S NEW  
   
 
PROJECT - POLYESTER CONTINUOUS POLY CONDENSATION UNIT

FIL also proposes to put up poly-condensation facility of approx. 300 MT per day capacity, which is a minimum economic size for Poly-condensation unit. It may be noted that presently, the POY capacity of FIL stands at 45000 TPA, which amounts to approx. 130 MT per day. Therefore, along with poly-condensation unit, the Company also proposes to increase its POY spinning capacity to:
  • Match the poly-condensation capacity.
  • Realign its position in line with the capacity expansion announced / being undertaken by other major industry players

The proposed unit would be a Continuous Poly-condensation unit, which offers the following advantages as compared to a Batch Poly-condensation unit:

  • Reduction in power, packing & transportation costs
  • Reduction in process time
  • Reduction in wastages due to avoidance of handling and storage requirements

The above project will aim at the:

  • Timely availability of raw material
  • Reduction in raw material costs and
  • Reduction of fixed cost per unit considerably
  • Improve profitability of the company on account of economies of scale.

The existing plant would not be able to accommodate the proposed project. The proposed project would be set-up in Silvassa at a place near the existing plant in order to ensure:

  • Better management control
  • Logistics management as the existing unit would also source its raw material POY chips from the proposed project
  • Lower Power Cost @ Rs. 2.60 / KWh

The cost of project has been estimated at Rs.125 crores, which is proposed to be funded by:

  • Equity - Rs. 37.50 cr.
  • Debt - Rs. 87.50 cr.

The Company is in the process of finalizing the land, contractor to build and supplier to supply the desired sets of plant and machinery.