Nakoda Ltd, a polyester filament yarn producer, plans to double its polymerisation capacity to 280,000 tons a year with an investment of Rs 19.35 billion over three years.
The company proposes to raise debt of Rs 15.50 billion through term loans. The remaining investment amount will be funded through internal accruals. The new capacity addition will be made to the company's existing plant at Surat in Gujarat.
The project, when complete, Nakoda to supply the entire range of polyester yarns in the domestic and international markets. The company currently has a debt of Rs 3 billion and the loan repayment has already started last year with the first installment of Rs 450 million.
A similar amount will be paid this year. The company has Rs 1.35 billion from its GDR proceeds which will be utilised for its expansion.
Nakoda currently has a capacity to produce PET (polyethylene terephthalate) chips of 50,000 tons a year , POY (partially oriented yarn) of 30,000 tons and FDY (full draw yarn) of 60,000 tons. It also has texturising facility of 30,000 tons.
Fibre2fashion News Desk - India