Still Synthesising

Indo Rama Synthetics is pitching for higher growth through a systematic capacity expansion

The Rs 1,900 crore Delhi-based Indo Rama Synthetics looks all set to grow through capacity expansion, taking advantage of supply shortages in a few of its product categories. After four straight years of losses, the company turned in a net profit growth of a whopping 120 per cent in fiscal 2002. Net sales, however, registered a marginal decline. It does seem that the company is well-positioned to double its bottomline in fiscal 2003.

The company produces polyester staple fibre (PSF), polyester filament yarn (PFY) and fibre-grade chips. PFY includes fully drawn yarn (FDY) and partially oriented yarn (POY), which is processed further to produce drawn textile yarn (DTY). The increasing use of polyester in some new areas, -- leaving aside its use in the traditional segment of apparels -- will help boost demand.

 

Growth strategy

Because of surplus capacity till fiscal 2002, and the high excise duty on polyster, the industry has had to face tough times, causing the closure and takeover of several units. It