Filatex India, a manufacturer of polyester filament yarn and polypropylene filament yarn, will increase polycondensation capacity by 50 TPD and set up additional manufacturing facilities for 120 TPD of polyester partially oriented yarn at its plant in Gujarat. It aims to enhance profitability and long-term economic viability with the new expansion plans.

The expansion plans were approved by the board of directors in a meeting held on Tuesday.

The company currently has polycondensation capacity of 1050 TPD at its plant at Dahej Industrial Estate, GIDC, Gujarat. The polymer is used for manufacturing polyester chips, polyester POY, polyester FDY and polyester DTY.

“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 company said in a filing with the Bombay Stock Exchange.

The estimated capital expenditure for the said expansion scheme is Rs. 130 crore which would be financed through Foreign Currency Term Loans & Internal Accruals.

Additionally, Filatex will replace two existing partially oriented yarn (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.

The execution period for this project is expected to be around 6-8 months and the estimated capital expenditure is Rs. 8 crore, which would be financed from internal accruals.

Filatex also announced that its revenue in Q1FY22 reached Rs. 698.91 crore, while EBITDA stood at Rs. 101.17 crore. The company’s profit before tax was Rs. 76.12 crore and net profit reached Rs. 52.14 crore.