Sumeet to spend Rs 1,250-mn for expansion

Mumbai/Ahmedabad: Surat-based Sumeet Industries Limited, producer of polyester yarn, woven fabric and menthol, has chalked out a backward integration and expansion plan involving an investment of Rs 125 crore.

The plan will cover expansion of polyester POY capacity from the existing 12,000 tonnes per annum (tpa) to 60,300 tonnes per annum and continuous poly condensation plant (CP plant) for 100,000 tpa.

To part finance this project cost, the board of directors of the company has approved the rights issue of equity shares up to Rs 26 crore. An extraordinary general meeting (EGM) has been proposed to be convened on March 3, 2008, to seek the approval of shareholders and members.

The company is also in the process of installing huge capacities of menthol flakes and menthol crystals. Menthol is used as a raw material in preparation of medicines, pharmaceutical formulations, herbal products, candy and chewing gums, cosmetics, pain balms and tooth products.

Sumeet Industries started its polyester operations in 2004 and weaving operations in 2005 with installation of 60 waterjet looms imported from Tsudakoma in Japan. The menthol operations began in 2006 with an installed capacity to produce 900 tonnes of peppermint oil and 300 tonnes of menthol crystal.