Speaking to FE, Ravi Sanghi, Sanghi group director, said that due to the financial restructuring of its high-debt burden and problems coupled with the poor market conditions, the company could not take up any expansion activities in the last 3-4 years.
We, however, believe that given the domestic potential and the opening up of world markets the demand for texturised yarn will go up immensely than expected and accordingly SPL has decided to go for expansion, Mr Sanghi added.
The company will be expanding its capacity from 75,000 tonne per annum to 90,000 tonne per annum in the next 12 months and is also switching over to manufacture of fully-texturised yarn from filament yarn with an estimated investment of Rs 70 crore, he said.
We are holding talks with financial institutions (FIs) and banks to fund the expansion and buying new machinery apart from raising from internal accrual and from the Technology Upgradation Fund (TUF), Mr Sanghi said. We see that Sanghi Polyesters has high growth prospects, he added.