Nakoda finalises plans for major expansion for texturised yarn
Nakoda Textile Industries Ltd (NTIL) has finalised plans for substantial expansion in its texturising capacity from existing level of 1070 metric tones per annum (MTPA) to 28,800 MTPA. The aforesaid expansion is being implemented at a Textile Park of which NTIL is the main sponsor. The texturising plant is expected to be fully operational by September 2009.
During May 2009, the company received fresh orders for fully drawn yarn (FDY) to the tune of 1850 metric tones (MT) amounting to around Rs 166.5 million. This is in excess of the company's monthly production capacity of FDY which has been well received by the market.
Speaking on the company's expansion plan, Mr. B. G. Jain, CMD, Nakoda Textiles Industries Ltd said, “We are amongst the largest manufacturers of FDY with an installed capacity of 19,500 MTPA. On completion of this texturising capacity, the company would be able to use almost entire capacity of its existing POY plant for captive purpose. He further added that the company expects to post a turnover of Rs 1000 crore during the calendar year 2009 as against Rs 800 crore for the year ended December 31, 2008.”
Nakoda is an ISO 9001-2000 company where quality management is a continuous process and a way of life. The company was incorporated in 1984 and initially commenced business with one texturising machine, with a capacity of 354 MT, at Silvassa. The company's funding included a seed capital of Rs 0.5 million from IDBI Ltd that used to be extended to technocrats.
In order to expand capacity, the company came out with its maiden public issue of fully convertible debentures of Rs 95 mn in 1992. The issue in which 12,000 investors participated was oversubscribed by 7 times.
Backward Integration & diversification,
In 1997, NTIL added four lines for manufacturing POY by importing machines from Taiwan. This project was financed with term loans from GIIC and GSFC and internal accruals. In 1999, the company picked up plant and machinery of Garware Nylons at Pune through an open auction of The Bombay High Court. Few years later NTIL acquired 2 POY lines from Indian Organic Chemicals Ltd. These initiatives helped them to reach the present capacity of 30000 MT POY.
In 2007, Nakoda added six lines to manufacture 19500 MT of fully drawn yarn (FDY) at its Karanj plant near Surat. The Rs. 267.5 mn project was funded by Rs. 180 mn term loan and the remaining came from internal accruals. Commercial production started in December 2007.
NTIL's plant is strategically located at Karanj near Surat and is better placed to cater to their customers who are texturisers. 95 per cent of India's texturisers are located in South Gujarat and Silvassa. Nakoda caters to the small and medium texturisers. The company has a 3 per cent market share in the POY segment and 15 per cent share in the FDY segment. POY and FDY manufacturing is highly capital intensive and are manufactured in hi-tech plants. The company has a headcount of 200 out of which 90 are workers.
Sound Management Quality
The management team is driven by experienced hands. The CMD, Mr. B.G. Jain, is an MBA, with 30 years of experience in the industry. Helping him in his endeavour is Mr. D.B. Jain, Jt MD, an MBA with 7 years experience in this line. Mr. M.S. Naik an ex banker with 38 years of experience , Mr. B L Maheshwari a Chartered Accountant with 24 years of industry experience and Mr. S.K. Bhoan a technocrat with 38 years of experience are independent directors on the board.
Nakoda Textile Industries Ltd