Hyderabad-based Suryalata Spinning Mills Ltd has decided to expand its blended yarn spinning capacity by the next few years.

The BSE-listed company said that it would take its blended yarn spinning capacity to 2,00,000 spindles in the coming years.

As a primary step, Suryalata Spinning is launching a new bay of manufacturing line with 3,5000 spindles at Urukondapet at an average approximated rate of Rs 25,000 per spindle.

In addition, the company is also establishing a 10 MW thermal (coal based) power facility for captive use with a projected cost of about Rs 45 crores.

The company said that the new power plant would help it to improve overall margins and slash additional costs.

Suryalata has been constantly amplifying its production capacitances by adding up 42,888 spindles during last 5-years with the help of internal accruals, promoters funding and loaning amounts from financial institutions.

While talking about the company's growth plans, Mr. M K Agarwal, joint managing director stated, ''In India, the present yarn consumption pattern is 60 per cent cotton and 40 per cent synthetic and in the world it is vice versa, that is,
40 per cent cotton and 60 per cent synthetic."

"Consumption of synthetic yarn is increasing in India and expecting in line to world consumption pattern in the years to come. It provides growth opportunities to synthetic industry and we are focusing only on spinning of synthetic blended yarns,'' Mr. Agarwal added.