New Delhi: Textiles firm Alok Industries today said it plans to invest up to Rs 2,000 crore in the next four years to expand production capacity as it looks to cater to the growing international and domestic demand.
“We will be investing nearly Rs 450 crore each fiscal year till 2014-15 for capacity expansion. Most of it will go into augmenting our polyester capacity,” Alok Industries chief financial officer Sunil Khandelwal told PTI.
The company, which sees the consumption of polyester going up in both international and domestic markets, is in the process of increasing its polyester production capacity to 1,400 tonnes per day from the current 750 tonnes per day. The new capacity is likely to be available July-August this year.
It has been in the process of investing Rs 7,000 crore on capacity expansion since the last six years.
Khandelwal, however, said the company is yet to finalise the details as to how the production capacities of its various products would go up in the face of the new investments.
“We are getting ourselves ready for the increased demand for polyester from our overseas as well as domestic clients,” Khandelwal said, adding that in the last fiscal alone the firm invested Rs 700 crore to increase capacities at its Silvassa plant.
When asked how the company will finance the expansion, he said it would be through internal accruals and debt.
The company, which is yet to declare its fourth quarter results, expects to grow at 30% year on year as against 11 per cent growth of the sector.
As per the industry estimates the Indian textiles sector is expected to touch $220 billion by 2020 from the current $70 billion.