Chandigarh-based Indian Yarns Ltd has invested Rs 30 crore to strengthen its presence in the domestic market.
V K Indrayan, Managing Director of the company said the post-quota regime has helped the company by creating a demand for synthetic yarn.
The company is adding 12,000 spindles to its existing base of 14,000 spindles.
The first phase of expansion has been completed with the installation of 7,000 spindles.
The second phase of expansion is slated to be completed by the end of this year.
The company has introduced a new technology to manufacture dyed yarn for which the machinery was bought from China.
Indrayan clarified that, the proposed expansion was targeting textile manufacturers of north, especially Ludhiana and Bhilwara.
The company which started with 6,500 spindles in 1996 gradually increased its capacity to 14,000 spindles in 2001.
Indrayan's stake in Indian Yarns at present is 69 percent and balance is held by the Punjab State Industries Development Corporation (PSIDC).
The company funded its expansion plan through Government of India's Textile Upgradation Fund Scheme (TUFS).
A turnover of Rs 65.5 crore has been achieved by the company in 2005-06 and is expected to reach Rs 80 crore in the coming year, said Manu Indrayan, Director of the company.
The entire capacity addition is for dyeing of yarn, he added.
A furnance-based in house power plant is planned to be set up with an investment of Rs5 crore.
Manu said that 150 workers will be added to the existing 450 in his team and product range would be increased to 40 products from the present 25 by year end.
About 5 to 10 percent of total output was earmarked for export and would be sold mainly in Turkey and Italy.
He indicated that the ultimate goal of the company was to integrate fibre, yarn and garment manufacturing as they had enough space and bright future prospects.
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