Filatex India Ltd. has established a respectable position in the polyester filament yarn industry in India. The company is manufacturing an increasing proportion of value-added yarns with versatile applications. It is also balancing its product portfolio and de-bottlenecking capacity to enhance its margins. The company success is derived from its astute capital investments and prudent financial management.
Filatex India was promoted by the Bhageria family hailing from Rajasthan. The company, incorporated in 1990, has been in the business of manufacturing synthetic yarns for more than two decades. It has its corporate office in New Delhi with manufacturing units in Dadra, Dahej and Noida, and marketing offices in Surat and Mumbai.
Said Mr. Madhu Sudhan Bhageria, Chairman & Managing Director, Filatex Ltd.: “The company has clocked revenue of Rs. 1,550.6 crores, a growth of 21% Y-o-Y basis. The positive divergence between revenue growth and profit growth indicates the robustness of the company’s business model and competitive position. Increase in turnover is due to the successful completion of commercial production for manufacture of 115 TPD of polyester fully drawn yarn and capacity expansion of value-added products, draw textured yarn (DTY) 200 TPD”.
He added: “Our company has set an ambitious target of doubling the revenue to Rs. 3,000 crores by 2021-22. Our strategy of adding value-added products has given strength to both the top and the bottom lines. During FY17, the overall polymer production increased by around 24% on y-o-y basis. The increase in polymer production was on account of the full utilization in both FDY and POY lines. Both the lines were run at almost 100% capacity. To add value to POY, new DTY machines were commissioned in the second quarter”.
The company’s DTY machines have achieved 90% capacity utilization, and a major part of DTY production is being exported. The demand for POY/DTY in the domestic market was good, and a judicious product mix was kept to serve both the domestic and export markets.
Future growth plans
Filatex has planned to add a bright polymerisation facility, as bright yarn is gaining increasing acceptance in non-apparel application as well. This too is a brown field project, a logical expansion at the same site. The company’s total capacity of polymer will increase by 300 TPD, which would be in addition to the 600 TPD semi dull polymer.
After commissioning of the bright polymer facility, the company will have a full range of product basket of filament yarn – POY, DTY & FDY both in semi-dull and bright segments in all varieties of coarse and fine deniers. The facilities at the Dadra plant will be utilized to produce colour yarns, special yarns made from own or bought out chips adapted to the customer needs.
The company has successfully completed commercial production for manufacture of 115 TPD of polyester fully drawn yarn and capacity expansion of value-added product – draw textured yarn (DTY) 200 TPD – in September 2016. It has undertaken an expansion scheme for putting up additional manufacturing facilities for 190 TPD of bright polyester fully drawn yarn, 50 TPD of semi-dull fully drawn yarn (LBS), 25 TPD of bright polyester POY and 85 TPD of bright chips which is progressing well. The estimated capital outlay is approximately Rs. 340 crores. The expansion programme execution period is expected to be 12-15 months as against 24-30 months required for a green field project.
Filatex’s product basket at the Dahej facility currently offers partially oriented yarn (POY), fully drawn yarn (FDY), drawn textured yarn (DTY) & chips in the semi dull range.