Jindal Poly to invest up to Rs 700cr for second plant Tuseday, Dec 07, 2010

New Delhi, Dec 7 (PTI) Packaging material maker Jindal Poly Films today said it will invest around Rs 600-700 crore to put up its second manufacturing plant near the existing facility at Nashik in Maharashtra.

"We have identified the required 250-300 acres land for putting up our second plant. The land is around 30-35 km away from the existing plant at Nashik. We will invest around Rs 600-700 crore in the facility," a company official told PTI.

The proposed facility would go on steam by 2012-13 with an initial manufacturing capacity of 30,000 tonnes per annum (tpa) BoPET and 66,000 tpa BoPP. Capacity of the plant could be enhanced up to four folds in future depending on the requirement, he added.
BoPET and BoPP are both packaging materials and Jindal Poly Films is the largest manufacturer in the country for those materials.

The lion''s share of the funding for the proposed facility would come from internal accruals. The company also plans to raise some debt as well.

Jindal Poly has already embarked on enhancing capacity of its existing plant with Rs 900 crore investment and will be completed within 2011-12. This brown-field expansion will take the firm''s BoPET manufacturing capacity to 187,000 tpa and BoPP capacity to 246,000 tpa from 127,000 tpa and 180,000 tpa, respectively.

Meanwhile, the company is aiming to clock over Rs 3,000 crore turnover in the current fiscal from Rs 1,655 crore recorded in 2009-10 on expanded capacity and high price for BoPET material.

"Buoyed by capacity expansion and high price for BoPET material, company''s turnover is likely to be in excess of Rs 3,000 crore in the current fiscal," the official said.

Jindal Poly Film has increased its BoPET capacity this year by 30,000 tpa in FY''10. The price of the material has also doubled from Rs 90 a kg in the beginning of the year to Rs 200 a kg now.