Filatex India plans to initiate an Rs 420 crore capacity expansion project at its Dahej plant in Gujarat. The project involves increasing the polyester yarn production to 3.90 lakh tonne per annum with an investment of Rs 275 crore besides setting up a 31.40 MW captive power plant with an investment of Rs 145 crore. Post this expansion, Filatex will emerge the fourth largest polyester yarn producer with a revenue of Rs 600 crore.
The company has already placed orders for machinery and the project will be completed by the next fiscal. The captive power plant, to be operational by FY’21 will substantially reduce the cost of power besides increasing Ebidta margins to 12 per cent. Filatex plans to venture into manufacturing of the polyester fabric in FY’21 with an investment of Rs 200 crore. The company will manufacture manmade polyester.