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The Textile Magazine
JUly 2012
2.8 per cent growth in PFY.
RIL contributed to 25 per cent of the domestic
PFY demand of around 2.2 mmt, 69 per cent of the
domestic PSF demand of 0.8 mmt and 47 per cent
of the domestic PET demand of 0.5 mmt. Produc-
tion volumes of polyester declined by 2.4 per cent to
1663 kt. PFY production decreased by 5.5 per cent to
695 kt, while PSF and PET production were almost
steady at 615 kt and 352 kt.
In case of polyester feedstock, domestic PTA de-
mand during the year was around 3.5 mmt, down by
three per cent from the previous year. MEG domestic
demand was around 1.7 mmt, up by four per cent and
PX domestic demand was 2.2 mmt, up by seven per
cent compared to the previous year. Fibre interme-
diates production (PX, PTA and MEG) of 4,756 kt
marked an increase of five per cent and PX produc-
tion increased by nine per cent to 2004 kt, PTA
production was up by two per cent at 2,069 kt, while
that of MEG was marginally higher at 683 kt.
During the year, the company enhanced its mar-
ket reach through improved customer interaction at
various open forums and through electronic and print
media. It also developed hygiene products, such as
hydrophilic spunlace fibre which has better moisture
absorbability and is used for high absorbent hygiene
products, micro spunlace fibres for extra soft hygiene
applications and trilobal spun-lace fibres. It also
launched a specialised pillow for relief from neck
pain while sleeping.
RIL innovations for textile industry during the year
included Recosilk, a specialised thread for embroi-
dery applications, and Recron Bind and a product that
increases knitted fabric structure strength. RIL’s contri-
bution to nature protection led development of products
to substitute harmful carcinogenic asbestos in roofing
applications, siliconised fibres for soil stabilisation and
fine denier fibres for the construction industry.
Future outlook
The global feedstock demand is expected to rise in line
with the polyester production. MEG demand is expected
to grow by six mmt by 2015, while capacity additions
are also foreseen at six mmt. This will assist plant
operating rates favourably. PTA demand is expected to
rise by 14 mmt by 2015, while capacity additions are
expected to rise sharply by 32 mmt. The PTA capacity
addition will require large investments in feedstock PX,
of which only 13 mmt is planned till 2015. The large
PTA addition may lead to price moderations, but a con-
straint in PX supplies will determine the operating rates
of these new plants and the subsequent market balance.
Demand growth of 6.4 per cent in PET has been es-
timated during 2012, predominantly in the Asia/Pacific
region. PET capacity additions, however, will rise above
the demand growth and are likely to pressure operat-
ing rates. About 60 per cent of this capacity addition is
expected in China.
As per the recent Fitch Ratings report, the outlook for
the Indian textile industry for FY 2012-13 is expected
to be stable for synthetic textiles and negative to stable
for cotton textiles, depending on the segment of the
value chain. The study estimates that cotton textiles will
face challenges of slower demand pick-up and loss of
margins before an anticipated recovery from the fall in
cotton prices.
Synthetic textiles will benefit from substitution of
higher priced cotton products and a greater demand for
blended textiles. As per Technopak estimates, the Indian
textile industry, over the long term, has a potential to
grow to $220 billion by 2020 from its current size of
around $80 billion, at a CAGR of around 10-11 per cent.
Such ambitious targets will be led by a significant incre-
mental fibre demand, and polyester is likely to account
for the majority share, given the limitations and restric-
tions associated with natural and other fibres.
w
fiber news
Mr. Mukesh Ambani, Chairman, Reliance Industries Ltd.