At present company has coal based power plant of 2.5 MW. Now Gujarat Gas Company has laid down gas pipe line in our factory location so we have planned to move from coal based power plant to gas based power plant which reduce our fuel and power expenses by about 30% and we can save around 150 lacs per annum in power and fuel account. The company with its wide experience in power generation plans to foray into energy sector.
At present the group has 10 fabric processing units in Surat city with a consolidated production of 10 Lac meters fabrics per day. The group is planning to bring all these units under Sumeet Industries Ltd. through a merger.
The company has already installed a menthol distilling plant which will start its commercial production shortly. The company plans to cater big FMCG companies with its products.
The company is hopeful for its bright future in all the sectors and value creation for its share holders.
1. Expansion Cum Backward Integration Plan
Company Planned to expand its Polyester POY spinning capacity from existing 12000 Tons per annum to 60300 Tons per annum. Company is setting up another 10 Lines of Polyester POY spinning plant with annual installed capacity of 48300 Tons.
Company also planned to setup one C.P. plant (Continuous Poly condensation Plant) for 53000 Tons per annum. By installation of this plant company can produce Polyester
POY directly from PTA, MEG which increases value addition substantially.
Total Project cost will be 125 Crores which will be funded as under:-
FCTL(ECB Loan)
80.00 Crores
Capital/Premium/Internal Accruals/ Unsecure Loans
45.00 Crores
Total
125.00 Crores
This project will start commercial production within 18 months time.
Projected financial performance from this project shall be as under( Rs. In Lacs.) :-
