India’s RIL sees strong polyester market

22 April 2008 23:00  [Source: ICIS news]

NEW DELHI (ICIS news)--Reliance Industries Limited (RIL) on Tuesday projected a strong outlook for polyester in the Indian market in the financial year ending 31 March 2009.

The company said cotton prices were expected to remain firm and this would, in turn, buoy polyester prices. “Polyester operating rates to improve,” it added.

RIL said it believed that easing of supply of intermediates would also improve polyester margins. Rising domestic demand would cushion the impact of unfavourable export environment on the manufacturers.

The Indian government’s decision in November to extend its Technology Upgradation Fund Scheme (TUFS) for the textiles sector for five years would sustain downstream investments, it said.

According to the Textiles Ministry, the government provides a 5% interest subsidy to banks that lend money to textiles and garment mills for their modernisation and expansion projects under TUFS.

By: Naresh Minocha
+65 6780 4359

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