Indo Rama eyes billion dollar revenues by 2009

NEW DELHI: Polyester manufacturer Indo Rama Synthetics is eyeing an over 98 per cent increase in its turnover to clock about Rs 4,100 crore in revenues by fiscal 2009, with the company hoping to reap the benefits of the Rs 900-crore capacity expansion.

"We are looking at 50 per cent growth in 2007-08 to clock a turnover of over Rs 3,000 crore and are confident to scale this further to become a billion-dollar entity by fiscal 2009," Indo Rama Chairman and MD O P Lohia said.

Currently, capacity utilisation at Indo Rama's plant is about 70-80 per cent and it would work at full capacity by September-October, Lohia said, adding that this would help the company increase its market share from the current 16 per cent to 20 per cent by end of the year.

"We would be scaling up capacity gradually. By 2008-09, we would be operating at 110 per cent capacity," he said.

After expanding capacity at its Nagpur's plant, Indo Rama aims for further expansion and is eyeing "new opportunities for growth".

"We are evaluating various options to expand. We are open to everything and may also look at acquisitions. Full capacity utilisation at our plants will add to our revenues and aided by further expansion in related areas, a turnover of one billion dollar by fiscal 2009 is achievable," Lohia said.

Indo Rama is also evaluating opportunities in the power generation sector. It would be adding 30 mw power by the end of the month, taking its total installed capacity to 80 mw. Of this the company plans to give about 30 mw power to other entities.

Having launched second plant at Butibori, its annual production capacity of polyester staple fibres, filament yarns and textile grade chips doubled.