Jindal Polyester plans Rs. 150 cr. expansion

By Our Special Correspondent

NEW DELHI, SEPT. 13. Jindal Polyester, the only Indian film manufacturer exempted from anti-dumping duty imposed by the European Union, will invest Rs. 150 crores in a new production line to double its capacity. Taking advantage of this exemption, the company plans to export at least half of the new capacity, stated a company release. The company already exports about 30 per cent of its production.

The thin polyester film unit will have a capacity of 25,000 tonnes per annum, making it among the largest single line polyester film production units in the world. The state-of-the- art equipment being procured for the purpose will allow it to produce films with high precision applications. ``Given the economies of scale, Jindal Polyester will be able to lower the cost of production significantly to give it a major price advantage in the international market,'' noted the release.

The existing installed capacity in the country for thin films is one lakh tonnes which is stated to be fully utilised. The company expects the trend in growth to continue well into the next decade and feels domestic demand will touch 83,000 tonnes annually by the year 2003 (when the new plant will be in operation), up from the present 70,000 tonnes. The company's last expansion exercise was completed in December 2000 when it added a new production line of 12,000 tonnes thick polyester film line unit which, however, is yet to achieve full capacity utilisation.

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