Reliance to boost Trevira's margins, net profit in 2005

14 February 2005 06:06  [Source: ICIS news]

NEW DELHI (CNI)--Trevira group of Germany is projected to post significant growth in sales and net profit in 2005, benefitting from initiatives launched by its Indian parent company Reliance Industries.

 

The initiatives are helping to facilitate savings in fixed and variable costs, increase sales and sales margin, and increase net profit.

 

An official from Reliance told CNI that Trevira would shift its back office operations mainly accountancy to Mumbai after the full commissioning of enterprise resource planning software SAP by 1 March.

 

Reliance is strengthening Trevira’s position as a producer of high-value speciality polyesters by rationalising the latter’s low-margin products and by supplying it standard polyester products such as partially oriented yarn from India.

 

The European group has already benefited Reliance’s capability to source polyester intermediates at lower prices and the change in product mix.

 

Trevira’s marketing network has been strengthened to help increase its market share in European and other markets.

 

Trevira is expected to save Euro3m/year after the completion of transfer of texturising equipment form Silkeborg in Denmark to Guben in Germany.

 

Trevira can produce a total of 130 000 tonne/year of polyester staple fibre and filament yarn at Bobingen and Guben in Germany, Silkeborg  in Denmark and Quevaucamps in Belgium.

 

Deutsche Bank transferred the control of Treivra to Reliance on 11 August, 2004 after the European Commission approved the acquisition.

By: Naresh Minocha
+65 6780 4359

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