Sumeet Ind mulls forward integration into texturised yarn

Having expanded its polyester oriented yarn (POY) and fully drawn yarn (FDY) manufacturing capacity from 50,000 tonnes per annum to 100,000 tonnes per annum, Surat-based Sumeet Industries Limited is now mulling forward integration into texturised yarn.

"Now that we have successfully expanded POY/FDY manufacturing capacity, in near future we are mulling forward integration into texturised yarn. We have also started producing texturised yarn on an experiment basis," said a company spokesperson.

While 20 per cent of the POY/FDY produced by Sumeet Industries might be utilised in manufacturing texturised yarn, the company mulls to sell the rest directly.

An emerging integrated producer of pet chips, superior quality of POY/FDY, multi-filament polypropylene yarns, Sumeet Industries recently completed its Rs 180 crore expansion program for enhancing its spinning capacity for producing POY and FDY to 100,000 TPA and setting up new 8.6 Mw captive power plant thereby enhancing total captive power capacity to 17 Mw.

"The board has decided to raise funds up to Rs 100 crore required for enhancing working capital due to capacity expansion and general corporate purposes. Funds will be raised though further issue of equity shares by way of FPO/rights/QIPs/ADRs/GDRs/Preferential Allotments to strategic investors," the company stated in a BSE announcement.

The chairman intimated to the board that the company has received overwhelming response in the quality of POY/FDY produced from recently commissioned project and full result of this project will be reflected from third quarter of the current year's operation. The company is expecting its turnover will cross to Rs 1000 crore in the current financial year.