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| Nakoda gets 18.5% stake in Surat Super Yarn Park |
| BS Reporter / Mumbai/ Ahmedabad Aug 21, 2009, 00:46 IST |
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Nakoda Textile Industries Ltd, one of the leading players in the fully drawn yarn market, has acquired 18.5 per cent stake in Surat Super Yarn Park, which is scheduled to be operational by September this year.
Nakoda Group, Shubhlaxmi Group and the Kothari Group have jointly floated a special purpose vehicle to set up Surat Super Yarn Park.
"Based on the proportions of machines to be installed, the players are given stake in the venture. Out of the total 108 machines to be set up by 27 entrepreneurs, Nakoda plans to put up 20 machines with a capacity of 28,800 tonnes per annum. This translates into 18.5 per cent stake", said Babubhai Jain, CMD, Nakoda Textile Industries Ltd.
Subhlaxmi and Kothari group have 15 per cent stake each in the park making Nakoda the largest stakeholder.
The investment for the park is estimated at Rs. 108 crores inclusive of coal based captive power plant of 15 Mw involving a cost of Rs. 55 crores. The company also plans to export 25 per cent of the production from Surat park to various countries at a later stage.
Apart from this, the company has also embarked on a capacity expansion with an investment of Rs. Rs. 333 crores. The first phase of the expansion is likely to be completed by September, 2009.
The expansion also includes increasing partially oriented yarn (POY) capacity from 30,000 metric tonnes per annum (MTPA) to 80,000 MTPA and backward integration by way of continuous polymerisation plant of 10,00,000 MTPA.
The expansion undertaken by the company will help it increase its topline and net profits. "Currently, the turnover of the company as on December 2008 is Rs. 800 crore, which we expect to rise upto Rs. 1,100 crore by the end of 2009 and Rs. 1,800 crore by 2010.
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