Mangalore: Indo Rama Synthetics to Set up Rs 1000 Crore PTA Plant in City
Source: Business Standard
Daijiworld Media Network – Mangalore (NR)
Mangalore, Dec 13: Indo Rama Synthetics has plans to invest around Rs 1,000 crore over the next four years. It has till date in the polyester staple fibre, filament yarns, textured yarns and textile grade chips achieved a production target of 6, 00,000 tonnes at its Butibori plant in Nagpur. And now plans are afoot to make significant increases in its manufacturing capacity as well.
In this context the company will be setting-up a new purified terephthalic acid (PTA) plant near the Mangalore city and is planning to bid for bigger power projects. In fact, IRSL chairman and managing director O P Lohia reportedly stated that as ONGC, IOC and MRPL is planning to set-up a paraxylene plant in the city, PTA, which is a raw material for manufacturing polyester and a by-product of paraxylene, will be available in plenty. So, it would be wise to set up a manufacturing facility there as well.
Further according to Lohia, with oil giants like ONGC, Indian Oil Corporation and MRPL setting-up paraxylene plants here in Mangalore, the city will become a petro-chemical hub in five years. Lohia pointed out that it will be unviable to open a small-sized PTA plant. IRSL will thus establish a plant with an annual polyester manufacturing capacity of 2, 00,000-3, 00,000 tonnes, he informed.
The company is expected to invest around Rs 1,000 crore for setting up the PTA plant over a period of four years, company sources said. The valuation of IRSL is over Rs 2,000 crore, according to current estimates. However Lohia did not disclose the name of the partner for setting up the PTA plant in the city and merely informed that they were waiting for the state government to assume office in the State so that they can get the necessary clearance.