Ganesh Polytex chalks out Rs 125 cr capex plan

Ganesh Polytex Ltd (GPL) has earmarked Rs 125 crore for funding its ambitious organic growth plans over the next one year.

The plan involves setting up greenfield plastic recycling projects with the capacity to covert 15,000 tonnes per annum of waste into partially oriented yarn (POY) and texturised yarn, GPL CFO Gopal Agarwal told PTI here.

The project cost of Rs 125 crore will be financed through a mix of equity, debt and internal accruals, Agarwal said.

As part of forward integration, the company will also creating capacities for the manufacture of 5,000 tpa of spun yarn out of recycled polyester staple fibre.

The project is proposed to be set up at Bilaspur, in Uttar Pradesh, near GPL's existing pet bottle processing unit. A plot measuring around 15 acres has been bought for the project, Agarwal said.

Established in 1989, GPL initially had a yarn dyeing and doubling capacity of 391 and 360 tpa, respectively. Since then the company has augmented its yarn dyeing capacity to 2,400 tpa.

In 1995, it diversified into the manufacture of recycled polyester staple fibre through recycling of post-consumer pet bottles, a non-biodegradable waste, setting up a plant with a capacity of 6,000 tpa. The plant and technology was imported from Korea.

GPL has achieved a CAGR of more than 30 per cent over the past five years and is targeting the same rate of growth in future also, Agarwal said.

Source:The Economic Times