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Nakoda plans Rs. 1,935-crore
investment for capacity hike
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, semidull,
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
Mr. B.G. Jain, Chairman and M.D.
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.
The Textile Magazine jANUARY 2012 | 63
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