Nakoda Ltd. has decided to venture into further capacity expansion at a new location 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 January 5, approved the major expansion plan to significantly enhance capacities and produce specialty yarns. After the completion of the expansion project, Nakoda will be in a position to cater to the entire 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 financed by a mix of equity and internal resources and also long-term debts. The required equity for the same is already raised partly through GDRs and partly through preferential allotments to the promoters and strategic investors.
Nokoda, incorporated in August 1984, was engaged in trading of textiles for a year since incorporation, and established its own texturising plant at Silvassa in the Union Territory 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 integrated 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 equipments, increasing productivity, introducing cost control and by developing capabilities of human resources.
In 2010 the spinning capacity was enhanced from 50,000 MTPA to 1,00,000 MTPA. The core business was expanded by implementing a continuous polymerisation (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 expected 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 material to be supplied to SSYPL. It is also expected to result in savings in the cost of certain inventories like spools, caps, pallets, etc.