Filatex is considering entry into the home textile segment. The company’s expansion includes ramping up facilities at Gujarat and also adding new lines to its plants for manufacturing fully drawn textured yarns. Drawn textured yarns are mainly used in weaving and knitting of fabrics, for making clothes, home furnishings, seat covers, bags, among others. Filatex is a manufacturer of polyester and polypropylene filament yarn and polyester chips. Its current capacity across the Dahej and Dadra and Nagar Haveli facilities together stand at 3,82,000 tons per annum that includes a recent addition of 60,000 tons.

The company is also putting up a captive power plant. The plant is expected to come up in the January to March period of 2021. Post the capex cycle coming through (capacity addition and new value addition line), Filatex India is looking at a near Rs 600 crore boost in its topline and a Rs 70 crore improvement in bottom line. Ebitda margins are expected to improve to 8.5 per cent to nine per cent from the existing 7.5 per cent to eight per cent levels. The company has a debt to equity ratio of 1.2:1 and repayments are being made on time.