Filatex India stock advances on expansion plans

The company approved increasing polycondensation capacity by 50 TPD. It also approved replacing two existing POY lines.

Jul 28, 2021 12:07 IST India Infoline News Service

IT Stocks Up
Filatex India Limited Board of Directors in their meeting held on July 27, 2021 have approved expansion plans. The company approved increasing polycondensation capacity by 50 TPD and putting up additional manufacturing facilities for 120 TPD of Polyester Partially Oriented Yarn at the Dahej plant.

The Company presently has the poly-condensation capacity of 1050 TPD at its plant at Dahej Industrial Estate, GIDC, Gujarat. The polymer is used for manufacturing for Polyester Chips 240 TDP, Polyester POY 125 TDP, Polyester FDY 315 TDP, and Polyester DTY 370 TDP.

“No additional land and infrastructure for raw material feeding would be required. This will lead to substantial savings in the capital cost as compared to if the said capacities were put up as a new green-field project. Execution period is expected to be about 12 months as against 24 months required for green field project."

The estimated Capital Expenditure for the said expansion scheme is Rs130cr which would be financed through Foreign Currency Term Loans & Internal Accruals.

It also approved replacing two existing POY lines (144 ends) with two new POY lines (192 ends) along with replacing winders in one POY line with new winders.

“The Company presently has yarn manufacturing net capacity of 110 TPD at its plant at Dadra. This proposed project will increase the POY capacity of the plant by 5 TPD as well as improve the quality of the yarn produced. Execution period is expected to be around 6-8 months,” the company said.

The estimated Capital Expenditure for the said expansion scheme is Rs8cr which would be financed from internal accruals. Inclusion of the above-mentioned expansion schemes will enhance profitability and long-term economic viability of the company.

Amid bearish markets on Wednesday, Filatex India Ltd was trading higher at Rs100.85 per piece up by Rs0.6 or 0.6% from its previous closing of Rs100.25 per piece on the BSE, at around 12.42 PM.

Related Story

Open Free Demat Account (Rs699)