Nakoda eyes $1 billion turnover by FY 2015-16

The company is expanding its POY and FDY manufacturing capacity at its Gujarat plant

With its lead banker Canara Bank along with a consortium of other banks appraising its Rs 1,700 crore expansion plans, Surat-based Nakoda Limited is now eyeing a $ 1 billion turnover by financial year 2015-16.

"Now that our lenders have appraised our expansion plans, soon we will begin execution of our Rs 1700 crore expansion plans in synthetic fibre capacity. Currently, our turnover is around Rs 2600 crore for fiscal 2012-13. However, post expansion which will take another three years, we are looking to cross the $ 1 billion mark (Rs 6000 crore roughly) for our turnover," said BG Jain, CMD of Nakoda Limited.
 

The synthetic textile fibre manufacturer is expanding its POY and FDY manufacturing capacity at its plant in Gujarat.

As part of the capacity expansion at a new location, the company will set up a 280,000 MTPA plant comprising of continuous polymerisation, direct melt spinning for the manufacture of POY, PTY, PET and FDY. According to Jain, the POY and FDY will be manufactured in the denier range of 30 to 500 having 12 to 578 filaments in bright, semi-dull, full-dull, cationic and dope-dyed yarns. While the project is all set to be the first fully automatic plant in India, it will also be the only fully integrated polyester filament yarn plant in the country.

Currently, the company manufactures POY, PTY, PET and FDY at annual capacity of 140,000. Post expansion, the total capacity will be around 420,000 MTPA in next three years. "We have also acquired a greenfield land of around 60 acres near our existing plant for the expansion. We hope to achieve financial closure for the projected cost of Rs 1700 crore soon," Jain added.

After completion of the expansion project, Nakoda will be in a position to cater to the entire range of polyester yarns in the domestic as well as international market. "We have already begun tapping markets like Latin America and Europe even as we look to expand," said Jain.

Further, the investment for the expansion project is proposed to be financed by a mix of equity and internal resources and also the long terms debts. Post the expansion, the unit will be equipped with state-of-the art R&D facilities to develop specialty yarns that cannot be afforded by small and medium units. Moreover, about 50 per cent of the production is to be captively utilised at Surat Super Yarn Park Ltd. (SSYPL) located in vicinity of the project.

Today, Nakoda witnesses about 10-15 per cent of its business coming from the technical textiles sector. "However, post expansion we are aiming at around 40 per cent of our business coming from technical textiles while rest from generic textiles," said Jain.

After expansion about 100 per cent of coal-based captive power generation will assure uninterrupted quality power supply at much cheaper rates.

The company also plans to capitalise on significant savings in the packaging cost by elimination of cartons for the material to be supplied to SSYPL.