Orkay Shuts Down Polyester Yarn Plant

Orkay thus becomes the fifth polyester yarn producer to close operations in the last one year. Others include Prag Bosimi, Nirlon, JCT, and Garware Nylon.

Top industry sources said the plant, which has been producing between 100-300 tonnes a month since April this year, shut operations sometime last month. Lack of working capital finance to run operations and buy raw material is stated to be the main reason.

Industry sources said Orkay's deal with the JVG group has got stuck because of opposition from financial institutions and banks. Banks have frozen further credit allocation till the company clears off past dues, a source said.

 

FIs and banks, which hold a minor stake in Orkay, have said the deal with JVG group can go through only after the management clears off their dues. Orkay owes over Rs 60 crore to FIs and banks. The company also owes Bombay Dyeing around Rs 1.5 crore for DMT purchases.