Indo Rama, Sulzer In Talks For Alliance

Swiss-based Sulzer is amongst the many companies which is reportedly negotiating with Indo Rama for the shirting project.

The proposed project has an estimated investment of Rs 200 crore. Though the financial details of the project is yet to be worked out, major portion of the finance would be through debt route and the company's own internal resources. The shirt project would be a forward integration to the existing polymer manufacturing plant of Indo Rama.

The company is presently expanding the capacity of its polymer plant in two phases, the first and second phases having added over 1,51,000 tonnes. The total polymer yarn production would be around 2,35,000 tonne by the end of expansion.

 

The company has recently posted its annual report for the year 1995-96. It has declared a dividend of 25 percent and has shown a profit of Rs 1.1 crore. Indo Rama is also going ahead with its purified terephthelic acid plant, which is expected to be on-stream by 1998.

Negotiations with other international petrochemical majors are on for a joint venture in the PTA project. The company will retain 51 percent equity in the PTA project while the remaining would be held by the partner.

The 2,50,000 tonne per annum (TPA), PTA complex is estimated to cost around Rs 1400 crore. The plant location is expected to be in Andhra Pradesh. Indo Rama had earlier approached Mitsui and Mitsubishi, the Japanese multi-product giants for a joint venture in PTA project.

While part of the project cost is to be borne by the collaborator through infusion of equity capital, the rest of the finance might come from another GDR issue.