Filatex India plans to enter into home textiles

Filatex India Ltd., a manufacturer of polyester and polypropylene multifilament yarn and polyester chips, after nearly competing a ?850 crore expansion, is now planning to foray into the home textiles segment, where margins ‘are better than in the commodity business’, a top executive said.

“We are planning to enter the fabrics business, mainly home textiles, where the margins are better. We are still finalising the plans; this business would involve an investment of around ?100 crore,” Madhu Sudhan Bhageria, chairman and managing director, Filatex India Ltd., said in an interview.

The company operates two plants, located at Dahej in Gujarat and Dadra & Nagar Haveli, a union territory. It plans to start the home textile business early next year. The firm is now examining whether it would set up the manufacturing unit in Maharashtra which offers sops to attract new businesses.

With this, its capacity will increase from 3.28 lakh MT per annum to 3.9 lakh MT.

Man-made fibres

Mr. Bhageria said polyester was slowly replacing cotton and thus companies in India would manufacture more man-made fibres to meet the demand.

“Currently China supplies 75% of the 70,000 MT per day of global demand for polyester yarn and India contributes 10-11%. As labour costs in China are increasing, production capacities have started moving to India and Indian firms should leverage on this opportunity,” he added.

Courtesy: The Hindu