SRF is planning to invest $58m in a greenfield biaxially oriented polyethylene terephthalate (BOPET) production facility at Indore, Madhya Pradesh, India.
Once operational, the proposed plant is expected to have a production capacity of 30,000 tonnes per annum (TPA) and a metallisation capacity of 8,000TPA, reported Business Standard.
The company intends to use more than 60% of the project's production to cater to the food packaging and beverage industries.
The investment for setting up the plant will be partially funded by International Finance Corporation (IFC), a unit of World Bank.
While IFC will provide up to $40m of the total investment, the rest of the amount will come from SRF itself, reported the publication.
IFC supported SRF's earlier greenfield projects in Thailand and South Africa, thereby enabling the firm to foray into these two new markets.
The current investment proposal will help SRF to further its efforts to seek growth opportunities in Indian and overseas markets.
SRF has business interests in technical textiles, chemicals, polymer and packaging films.
The company currently operates in the Indian states of Madhya Pradesh, Gujarat, Rajasthan, Tamil Nadu and Uttarakhand.
SRF's packaging films are used in flexible packaging of soaps, detergents, tea, shampoo sachets, food packaging, cable, insulation, ducting tape, textile and more.
The company manufactures a wide range of standard and speciality and biaxially oriented polypropylene (BOPP) films. It exports packaging films to around 70 countries.
Image: SRF to invest in BOPET production facility. Photo: courtesy of aopsan via freedigitalphotos.net.