Filatex India Limited is a polyester and polypropylene multifilament yarn and polyester chips manufacturer and Mr Madhu Sudhan Bhageria, the Chairman & Managing Director is a first generation entrepreneur with around four decades of experience.
Can you please give us a Brief Background on Filatex India Limited (FIL)?
Filatex India Limited is amongst top five manufacturers of polyester filament yarns. We have two manufacturing facilities at Dadra & Nagar Haveli and Dahej which are equipped with state of the art modern German machines. Its product offerings include all ranges of yarns; by variety POY, DTY and FDY and fine deniers in all shades, such as semi dull or bright or colors of different shade, covering a wide range of coarse and fine denier.
The global trend is moving from natural fibers mainly cotton to man-made fibers such as polyster. What are your views on the same?
It is now the saturation point for natural fibers since there are a lot of constraints in their growth. Additionally, the cost of a natural fiber is higher than that of a man-made fiber. In the forthcoming years, the textile industry and its growth will be led by polyster on account of its economical and affordable prices and excellent quality. It is inevitable that Polyester will gradually become the fibre for the masses. The global demand for polyester fibre is growing at around 5%, which means that the increase in demand will be approx. 3 MT annually. The main supplier of polyester fiber is Asia Pacific region and it accounts for around 90% of the global volume. India is the second largest supplier at around 10% with China being the largest.
What are your expansion plans?
We are buoyant about future prospects of our business and we are continuously working towards strengthening and growing our business. We intend to incur a capital expenditure of Rs. 275 crore towards increasing our production capacity to 3,28,300 TPA from 2,37,000 TPA along with addition of POY capacity of 61,000 TPA and texturing capacity of 72,000 TPA. Besides the aforementioned, we also intend to initiate a debottleneck opportunity in our plant which will help us increase our polymerization capacity from 900 TPD to 1050 TPD. The entire project is likely to be completed by end of this year.
We also have invested in a captive thermal power generation plant at an estimated CAPEX of Rs. 100 crore and solar power generation capacity of Rs.12 crores. Our own power generation would certainly strengthen our position.
Going forward, we also want to penetrate the Fabric manufacturing and processing markets.
What is your outlook on the Global Textile market and its future?
The global textile market is constantly seeing a gradual but steady growth, mainly on account of the continuous increase in demand for apparels across the globe.
Various end user industries such as apparel, furnishing, event management, etc. extensively use textile fabric leading to a growth which is driven, both domestically and globally, primarily by man-made fibres.
China contributes 70% of the supply of polyester fiber globally in terms of volume. However, this is changing and China’s contribution is slowly declining due to high wages and paucity of workers. This opens up roads to new opportunities for Indian manufacturers to step in and contribute towards the gap. We are very hopeful of the future prospects for polyester fiber business in India. Also the recent policy initiatives by the Government of India will act as accelerators towards the growth of Indian textile industry at large.
Where does Filatex stand on the growth map?
We are upbeat, bullish and very confident about the future prospects of our business and we firmly believe that the polyster yarn is the future of Indian textile industry.
In addition to our capacity expansion plans , we have recently commissioned the expansion of “Bright” yarns which has led to higher profits margins in H1FY 19 and it is likely that it will continue to yield positive results in H2FY19 and FY20.
Across the years, a vibrant organization has been built based on our hard-work, courage and endurance.
We foresee a promising future, emerging with the strengths of our hard work and competencies contributed over the years, backed up by world class assets.
The immense support and co-operation of our loyal customers, dedicated employees, partners, supportive bankers and other business associates in strengthening the company and our efforts will ensure that the company and the textile market keeps growing....