Sumeet to up presence in polyester yarn

Surat-based Sumeet Industries Ltd is planning to strengthen its presence in polyester filament yarn by expanding its capacity and setting up a facility with backward integration, at an investment of Rs 90 crore.

Sumeet, which has business interests in the textile space, plans to expand its polyester POY-spinning capacity to 56,000 tonne a year from the present 12,000 tonnes a year by setting up 10 more lines of polyester POY-spinning plant with an annual installed capacity of 44,000 tonnes.

The company will install a continuous poly condensation plant (CP Plant) with a capacity of 56,000 tonnes per annum.

"This will enable the company to produce polyester POY from PTA, MEG, said Shankarlal Somani, managing director of Sumeet Industries. The commercial production on the expanded facility is expected to start by September 2008.

Recently, the company announced a diversification plan to enter the booming real estate sector and infrastructure business with an initial development of its 55 acres near Kandla Port and is in the process of acquiring additional land of 200 acres in the adjoining area.

The company is considering a joint venture with a renowned infrastructure company for the development of an industrial park and power generation plants at its existing facility. Moreover, the company is also planning to develop its existing 100,000 sq metre land for commercial development near Surat.

The company recently commissioned its Rs 2.5-crore menthol plant with a production capacity of 150 tonnes per month expandable to 800 tonnes per month in Surat.

When quizzed on the sales strategy, Somani said though they had not yet tied up with any local or overseas menthol consumers, they would use the network of the group companies, which are in the same line of business.

The company plans to set up a 2.4-Mw gas-based captive power plant at an expenditure of Rs 5.5 crore.