New Projects & Expansion Plans on Track
The man-made fibre (MMF) industry in India is experiencing rapid growth and has become a favored investment destination due to low manufacturing costs. Accounting for 17% of India’s textile exports, the sector has positioned India as the world’s sixth-largest exporter of MMF textiles. The Government’s support, including the allowance of 100% FDI and initiatives such as the National Technical Textiles Mission and Production Linked Incentive (PLI) scheme, is expected to fuel the industry’s growth. Polyester and viscose dominate the MMF market in India, with polyester projected to dominate global fiber demand by 2030. Despite challenges such as rising raw material costs and supply disruptions, the MMF sector is poised for substantial growth in India’s textile sector, with Textile Parks like 7 PM Mitra Parks attracting lucrative investment opportunities.
Indo Rama Synthetics (India) Ltd., incorporated in 1986, has emerged as one of the largest dedicated polyester manufacturers in India. With over three decades of market presence, the company is recognized as one of the country’s most cost-efficient polyester producers. Indo Rama Synthetics has an integrated production facility in Butibori, near Nagpur, Maharashtra, and enjoys a global presence due to its well-defined quality and process management systems. During the financial year 2022-23, Indo Rama Synthetics achieved revenue from operations of ₹4,084.91 crores on a consolidated basis.
Committed to driving sustainable growth and creating value for its stakeholders, Indo Rama Synthetics proactively manages costs, optimizes operational efficiency, and reduces unnecessary expenses. This involves streamlining processes, improving supply chain management, and leveraging technology to enhance productivity and reduce costs. The company also invests in employee training and development, technology utilization, and production optimization to increase output and meet the growing demand for its products and services while maintaining high-quality standards. Indo Rama Synthetics pursues long-term growth by exploring new markets, expanding its product portfolio, and investing in research and development to stay at the forefront of industry innovation.
Looking ahead, Indo Rama Synthetics remains optimistic about resilient growth and value creation for stakeholders. The company continues to focus on widening its product basket, strengthening its business model through cost optimization, and harnessing the potential of its employees. Expansion plans are underway, with the completion of a ₹600 crores investment approved by the Board. Indo Rama Synthetics expects the MMF industry in India to continue expanding, driven by increasing demand for nonwovens, technical textiles, and changing consumer trends.
Future Growth Plans of the Company:
The company’s expansion plan of ₹600 crores, approved by the Board last year, is set to be completed by September 2023. Commercial production of Bottle Grade Pet Resin in its Wholly Owned Subsidiary (WOS), Indorama Yarns Private Limited started in May 2023. Additionally, balancing equipment for value addition, such as DTY in its WOS, Indorama Ventures Yarns Private Limited, will commence commercial production in phases and is likely to be completed by September 2023. With the completion of debottlenecking activities in phases by September 2023, the installed production capacity of the Plant will improve to 7.00 lakh tons from the existing 6.10 lakh tons.
The MMF segment is expected to be highly lucrative in the future, as India has eliminated anti-dumping duty on important raw materials like Purified Terephthalic Acid, Spandex, and Viscose staple fibers. The Indian market presents promising opportunities supported by Government policies, including 100% FDI allowance and initiatives like the National Technical Textiles Mission and PLI Scheme for textiles. The MMF segment is expected to thrive, stimulated by the elimination of anti-dumping duties on key raw materials and the rationalization of GST. The Indian Government’s initiatives such as PM Mitra Park, RoDTEP, RoSCTL, and QCOs further support the textile industry’s growth.
Indo Rama has been a prominent player in India’s polyester industry for the past three decades. The company is recognized for its exceptional product quality and extensive range of polyester products. Indo Rama Synthetics prioritizes high-quality standards, innovative business practices, and technical collaborations with industry leaders to cater to its customer-centric approach.