Announcement of IFC to Assist Bombay Dyeing's Seventy-Five Million Seventy Thousand US Dollars DMT Project on June 3, 1982

it',ut(~U /H ( opyol l IFC Press Release No. 82/29 Thursday, June 3, 1982 IFC to Assist Bombay Dyeing's $75.7 Million DMT Project India's man-made fibre industry will be expanded with a $75.7 million project by The Bombay Dyeing and Manufacturing Company Limited which will produce 60,000 metric tons a year of dimethyl terephthalate (DMT), the principal raw material for polyester fiber and yarn production. Bombay Dyeing is a leading Indian textile manufacturer and a major exporter of cotton textiles. Financing for the venture is being provided by Indian investors and by the International Finance Corporation (IFC) together with a participating institution, Manufacturers Hanover Trust Company. IFC, which assists private enterprise ventures in developing countries, is lending $18.8 million for the project and Manufacturers Hanover is taking up part of this loan. The Indus- trial Credit and Investment Corporation of India is leading a consortium of Indian financial institutions lending $12.4 million and the State Industrial and Investment Corporation of Maharashtra is lending $1.1 million. The State Bank of India is arranging commercial bank loans of $13.9 million. Maharashtra State Government financing of S4.2 million, a $5.5 million debenture issue to be floated by the Company, and $19.8 million in cash generation complete the financial plan. The DMT plant is being procured from Hercofina, of the United States, and will be located at Patalganga, about 45 miles from Bombay. Bombay Dyeing expects to import paraxylene during the plant's initial years of operation but will obtain the other principal raw material, methanol, from Indian producers. All of the Company's production will be sold domestically to polyester fiber and yarn producers. The project is in line with the Government's effort to increase output of man-made fibers to help supply the growing market in India. It will result in estimated net foreign exchange savings of $20 million a year. (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 676-0394).