Singapore-based Indorama Corporation has unveiled plans to invest around Rs. 1,000 crore within three years in India to set up three manufacturing facilities to produce spandex fibre, used in various applications like stretch denims and sportswear.
The company, which is present in India through its wholly-owned subsidiary, Indorama Industries Ltd., has already invested Rs. 400 crore for its first plant at Baddi in Himachal Pradesh. Two new units will come up at the same location shortly. The company also announced the launch of new freedom fibre ‘Inviya’ on the occasion.
“In the next three years, when all the three plants are completed the investment will reach Rs. 1,000 crore,’’ according Indorama Corporation founder and chairman, Sri Prakash Lohia and managing director, Amit Lohia.
The Baddi plant, which will be commissioned, next month, has a capacity of 5,000 tonnes per annum to produce its branded spandex product 'Inviya'. "With the commercialisation of three plants, our total capacity to produce ‘Inviya’ will treble to 15,000 tonnes per annum over the next three years,’’ Mr. Amit Lohia said.
The company, which exports polyester yarn to India, is looking to cash in on the high growth of spandex utilisation in the country. According to the company estimates, the consumption of spandex in India is nearly 6,000-7000 tonnes per annum, all of which is imported. “Indian market for spandex is currently just around one per cent of the total global market, which is around 6-7 lakh tonnes per annum. Due to such a low base, we expect a high growth in this segment,’’ Mr. Lohia said. The demand for spandex in India is growing at 15-20 per cent year on year.
Indorama Industries, which employs around 270 people in India, is also looking to more than double the workforce in the next three years. It has already appointed dealers in South and North India and is planning to appoint dealers in Surat and Kolkata to cater to Eastern and Western parts of the country. Indorama Corporation, which has presence in sectors like textiles and petrochemicals, posted revenues of $8 billion in 2011.