Ester Industries expands to beat the slowdown

Written by fe Bureaus | Updated: Apr 30 2009, 06:12am hrs
At a time when companies are postponing their capex plans to tide over the global financial meltdown, New-Delhi-based Ester Industries is investing Rs 216 crore to double the production of poly film by 2011-12.

The company will raise some debt, internal accruals and equity to fund the expansion. The industry is seeing growth in demand for polyester films at a compounded annual growth rate of 10% over the next five years, as the retail industry penetrates deeper among consumers.

Says Arvind K Singhania, chairman and managing director, Ester Industries, We have two production lines with total capacity of 31,000 tonnes every year. We are going to build another big line of 30,000 tonne, which will be commissioned in the last quarter of 2010-11.

The company got a boost in earnings in 2008-09 on account of better prices and higher production through de-bottlenecking of its plant at Khatima, Uttarakhand.

Ester has continuously been in search of lower costs to improve margins. It shifted to rice husk instead of furnace oil for heating the thermic fluid running through the machinery. With rice husk cheaply available in Uttarakhand, a rice growing state, it not only brought down costs, but also made the company eligible for carbon credits.

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