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The Textile Magazine
jANUARY 2012
|
63
Nakoda
plans Rs. 1,935-crore
investment for capacity hike
corporate news
Nakoda Ltd. has decided
to venture into further capac-
ity expansion at a new loca-
tion by setting up a 2,80,000
MTPA plant comprising
continuous polymerisation
and direct melt spinning for
the manufacture of POY and
FDY in the denier range of
30 to 500 having 12 to 578
filaments in bright, semi-
dull, full-dull, cationic and
dope-dyed yarns.
The Board of Directors,
at its meeting held on Janu-
ary 5, approved the major
expansion plan to significantly en-
hance capacities and produce spe-
cialty yarns. After the completion of
the expansion project, Nakoda will
be in a position to cater to the en-
tire range of polyester yarns in the
domestic as well as international
markets.
The project, estimated to cost Rs.
1,935 crores, is proposed to be fi-
nanced by a mix of equity and in-
ternal resources and also long-term
debts. The required equity for the
same is already raised partly through
GDRs and partly through preferen-
tial allotments to the promoters and
strategic investors.
Nokoda, incorporated in August
1984, was engaged in trading of tex-
tiles for a year since incorporation,
and established its own texturising
plant at Silvassa in the Union Ter-
ritory of Dadra & Nagar Haveli in
February 1986. It was engaged in
processing of polyester yarn like
texturising and twisting. Its licensed
and installed capacity for texturising
was 708 MTPA and for twisting 525
MTPA. The texturising capacity
was then expanded to 2,658 MTPA
by adding new texturising machines.
The expansion plant was set up at
Karanj village in Surat district.
The company embarked upon in-
tegrated plan of POY spinning with
an installed capacity of 6000 MTPA.
Initially, the POY spinning lines
alongwith other machineries were
erected at the site and commercial
production commenced in March
1997. Gradually, the POY capacity
was enhanced to 12,500 MTPA by
installing the balance equip-
ments, increasing productiv-
ity, introducing cost control
and by developing capabili-
ties of human resources.
In 2010 the spinning ca-
pacity was enhanced from
50,000 MTPA to 1,00,000
MTPA. The core business
was expanded by imple-
menting a continuous po-
lymerisation (CP) plant as
backward integration with
capacity of 1,40,000 MTPA.
The new project will be a
state-of-the-art R&D facility
to develop specialty yarns. About
50 per cent of the production will
be captively utilized at Surat Super
Yarn Park Ltd. (SSYPL) located in
the vicinity of the project. This is ex-
pected to be the only fully integrated
polyester filament yarn plant as well
as the first fully automatic plant in
India. It has 100 per cent coal-based
captive power generation assuring
uninterrupted quality power supply
at much cheaper rates.
The project is expected to yield
significant savings in packaging cost
by elimination of cartons for the ma-
terial to be supplied to SSYPL. It is
also expected to result in savings in
the cost of certain inventories like
spools, caps, pallets, etc.
w
Mr. B.G. Jain,
Chairman and M.D.