Reliance Chemotex has proposed expanding capacity by an additional 6, 250 spindles at its existing manufacturing facility. The company’s current capacity is 54, 816 spindles with 90% utilisation. The new capacity expansion are made at an investment of Rs. 53 crores and is expected to start commercial production by December 2022.
With the additional spindles, Reliance Chemotex will have capacity of 61, 056 spindles. The proposed expansion is to expand the manufacturing capacity in view of increasing demand for the company’s products.
Reliance Chemotex Industries Ltd. was established in 1977 and is a leading manufacturer of synthetic (raw white, fibre-dyed and dope-dyed) yarn. The Company’s state-of-the-art manufacturing facility is located in Udaipur, Rajasthan. The Company has a Zero-Discharge, Fibre-Dyeing Facility with a capacity of 12 MT/Day. The Company has been exporting yarn since 1987 and has a loyal customer base around the world – it currently exports over 55% of its revenue to developed markets like North America and Europe.
The Company manufactures 100% Polyester, 100% Viscose, 100% Acrylic, 100% Bamboo Viscose as well as Polyester / Viscose, Polyester / Acrylic, Polyester / Viscose / Acrylic blended yarns with a focus on technical textiles and high, value-added end-uses. The company’s yarn is used in a wide array of products – Carpets, Upholstery, Awnings, Artificial Leather, Suiting, Automotive and Aerospace Applications, Medical and Industrial End-Uses.
The Company is committed to expanding its Solar Power Capacity. During the last fiscal, we had enhanced our Solar Power Capacity to 1.4 MW. We endeavour to strategically scale this capacity up to 3.5 MW. This project will reduce the Company’s carbon footprint, lead to significant cost savings and will, to a certain extent, insulate the Company from fluctuations in Industrial Power Tariff Rates.
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“Our ongoing expansion and modernisation project, which was delayed by the pandemic, is nearing completion. We are now planning to further expand our capacity by 6,240 spindles. The proposed expansion will focus on technical textiles and other value-added products. This project will allow the company to take further advantage of economies of scale thereby reducing operating costs, expand our product offerings and improve profitability.
– Sanjiv Shroff, Managing Director of Reliance Chemotex Industries Limited