Reacting to the Union Budget 2014, Mr. Y.C. Gupta, Business Head, Indorama Industries Ltd. (IIL), said: “We are consuming 14 raw materials as input and all the 14 raw materials are 100% imported, on which we are paying customs duty ranging from 5% to 10% depending on each raw material”.
The duty on spandex, if imported directly from ASEAN countries, is only 3%. Currently 75% of the total volume of spandex consumed in India is being imported. Unfortunately the spandex manufactured in India attracts customs duty of 5 to 10% on the raw materials imported in India. This makes local manufacturing less competitive.
Indorama started production at its Indian plant in March 2012. The company suffered huge losses in the first couple of years on its investment of Rs. 450 crores in the new plant, which was brought in as 100% FDI.
“This step in reducing the customs duty to nil, on import of 2 raw materials is a very positive signal and encouragement to domestic Industry. This will help the domestic Industry to create more employment and will save foreign exchange. This may stop us from further bleeding. However there are another 12 more raw material inputs, on which the Government should also consider it”, said Mr. Gupta.
“We feel, there is a lot more to be done by the new Government. However, one thing is very positive that it has started moving in the right direction, for addressing such cases of inverted duty, as was mentioned by the Finance Minister, in his Budget speech. We are very sure that these steps will certainly bring more FDI into India, and will also send very strong signals to the foreign investors to invest in India”, he added.
Y.C. Gupta appointed Business Head of Indorama Industries
Mr. Y.C. Gupta has been appointed the Business Head of Indorama Industries Ltd. (IIL) to look after the entire profit centre of the company in India. Based in Delhi he will be leading the company’s operations and the INVIYA brand of spandex yarn.
IIL is currently producing 5,000 MT of INVIYA brand of spandex yarn which is being widely used by all big consumers of Spandex in India and is being exported extensively to various countries. It is the only indigenous plant in India which has been set up to cater to the needs of the textile Industry in India. Expansion of another 5,000 MT is on the anvil.
Mr. Gupta has to his credit an illustrious career of over 35 years in textiles in India as well as in countries like Indonesia and Mauritius. He was earlier heading LNJ Denim, a unit of RSWM Ltd as the CEO and Business Head. He was instrumental in taking the profits of LNJ Denim to soaring heights and is credited with creating LNJ Denim as one of the best denim producers in India.
In the last 28 years, he has worked in different capacities with many organisations of repute, including Vardhaman, DCM, PT Indorama (Indonesia), Maral Overseas Ltd., Gonterman Pipers India Ltd., and has spearheaded many projects to fruition.