Nakoda to invest Rs1,935 cr in new plant/news09012012

Surat-based Nakoda will spend Rs1,935 crore on establishing a new plant for manufacturing partially oriented yarn and fully-drawn yarn, with a total capacity of 2.80 lakh tonnes per annum (tpa), to cater to the entire range of polyester yarns.

The investment would be made through equity, internal resources and a long-term debt, the company informed the BSE.

The required equity is already being raised partly through GDRs and partly through preferential allotments to the promoters and strategic investors.

The company's board of directors, at its meeting yesterday, approved the plan to significantly enhance capacities and produce specialty yarns.

After completion of the project, Nakoda will be in a position to cater to the entire range of polyester yarns in the domestic as well as international market.

The proposed plant will have state-of-the art R&D facilities to develop specialty yarns, about 50% of whose production would be utilised at the Surat Super Yarn Park Ltd (SSYPL), located in vicinity of the project.

This will be the only fully-integrated and automatic polyester filament yarn plant in India.

It will have a 100% coal-based captive power generation facility as well, assuring uninterrupted quality power supply at much cheaper rates. It would bring significant savings in packaging costs to the company.
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