Ganesh Polytex to up capacity by 156%

Kanpur-based Ganesh Polytex Ltd (GPL), a manufacturer of regenerated polyester staple fibre (RPSF), is planning to raise its production capacity to 20,000 tonnes per annum by 2006-07, as against the present capacity of 7,800 tonnes.

In the first phase, the company is setting up a 9,000-tonne plant at Pant Nagar in Uttaranchal. To be commissioned with an investment of Rs 16 crore, the plant is expected to start production by January next year, according to the company's managing director, S S Sharma.

GPL is also considering to hit the markets with an initial public offer to fund its expansions. Sharma, however, said no timeframe had been fixed for the public offer because the company was weighing all options before going for the issue.

He said the company was looking for growth in the exports segment (which is at present 3,000 tonnes per annum) by adding "more and more value-added products having vast potential in the local and international market" into its basket.

The company has formed a task force to identify and venture into value-added products like technical textiles, geo textiles, medical textiles, home textiles, quilt, comforters, garment interlinings, floor carpets, textiles used in the automobile sector.

"We are an 18-year veteran with products lines like twisting and texturising of POY and dyed fibre and yarn. These new value added products will improve the bottom line further," Sharma said.

The company was able to clock in a net profit of Rs 22.84 lakh during the quarter ended June 30, 2005, compared with net losses of Rs 15.99 lakh in the corresponding quarter of the previous year.

The total turnover of the company in the quarter ended June 30, 2005, was Rs 11.76 crore, as against Rs 9.21 crore during the corresponding quarter of last year.

Export sales also witnessed an 89 per cent jump to Rs 3.13 crore for the quarter ended June 30, 2005, as against Rs. 1.66 crore during the corresponding quarter last year.