The company's total capacity will, as a result of the expansion, rise to 95,000 tonnes. That will make it the largest producer after Philips Carbon Black which produces 78,000 tonnes.
Top company sources said the project is at an advanced stage of consideration. The estimated cost is Rs 130 crore and it will be funded by term loans and internal accruals. Meanwhile, the company has dropped plans to enter the fibre glass industry by setting up a 4,000 tonnes fibre glass plant. However, after a careful analysis of market conditions, it has been concluded that the plant will not be viable, sources said.
We want to focus on our existing businesses and on-going projects. We don't want to have a large number of businesses, said company sources.
Indian Rayon is now implementing several projects such as caustic soda, expansion of textile mills, setting up of power plants and a sea-water magnesia plant. The projects are to be commissioned by mid-1998.
Besides, the company is among the top five grey cement producers in the country with a capacity of three million tonnes. In the white cement segment, its 3.3-lakh tonne plant is the largest single-location plant in the world.
Company sources say the carbon black industry is doing well and expansion should boost growth in volumes. Carbon black is used in tyre manufacture. The tyre industry, after years of recession, is limping back to steady growth, thanks to the present boom in automobile sector.
