India’s BDMC eyes polyester profit in 2009-10
10 September 2008 18:35 [Source: ICIS news]
NEW DELHI (ICIS news)--India’s Bombay Dyeing and Manufacturing Company (BDMC) is aiming to turnaround its loss-incurring, fledgling polyester staple fibre (PSF) business in financial year ending 31 March 2010, a company source said on Tuesday.
The company is expecting prices of PSF intermediates, purified terephthalic acid (PTA) and mono ethylene glycol (MEG), to decline during second half (October 2008-March 2009) of current financial year and is trying to buy them at lower prices during this period.
BDMC is expecting the domestic market for PSF to gradually improve during the remaining period of financial year 2008-09. It is also aiming to increase production of specialty grades of fibre to earn higher sales margin. The polyester division is thus expected to generate profit in 2009-10, he said.
The company is considering setting up of coal-fired steam boiler and thermic oil heaters to reduce energy expenditure at its 165,000 tonnes/year PSF plant at Patalganga in
It also banking on financial incentives provided by the Maharashta government to PSF plant under the latter’s policy of granting mega-project status and accompanying incentives to projects set up large investment in the state.
The company thus factored in incentives aggregating to Rupees (Rs) 158.9m ($3.4m) during 1October 2007 to 30 June 2008 in its accounts.
The polyester division incurred a loss before interest and tax (LBIT) of Rs33.5m on Rs2.23bn sales in the first quarter (April-June 2008) of the current financial year.
The division incurred LBIT of Rs540m on Rs3.86bn sales in financial year 2007-08.
Earlier this year, the division disposed of major portion of its 165,000 tonnes/year dimethyl terephthalate (DMT) plant that was mothballed in July 2007at Patalganga.
($1 = Rs45)
To discuss issues facing the chemical industry go to ICIS connect
By: Naresh Minocha
+65 6780 4359
< previous article(VIDEO - ICIS news Europe Lunchtime Bulletin 30 October 2009)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
Links posted in this story:
|
|
Related Articles
- 05 Nov 08 15:53 India's Reliance to restart polyester units
- 26 Sep 08 03:25 Singapore's Tuas Power to build clean coal plant
- 17 Sep 08 05:36 Asia PTA sheds $360/t, at 10-month low
- 12 Sep 08 10:26 Taiwan's Tuntex to work on Tainan PTA in October
- 12 Sep 08 07:37 Shell October MEG nomination falls $130/t
- 11 Sep 08 11:06 SABIC nominates Oct MEG ACP $150/t lower - buyer
- 10 Sep 08 10:00 MEGlobal nominates October MEG ACP $130/t lower
- 05 Sep 08 21:05 US FMs halt fall in EG spot prices
- 09 Sep 08 04:50 TOC Glycol to shut Thai MEG line in October
- 09 Sep 08 04:12 SM Dyechem to shut MEG line end-September
- 11 Aug 08 04:57 India to be No 2 Asian PTA importer
- 30 Jun 08 17:57 India PSF glut, rising feedstock to persist - BDMC
Latest News
- 25 Nov 09 18:04 Cefic to cut spending by further 10% in 2010 - director general
- 25 Nov 09 17:51 Naphtha price critical to benzene in 2010 - ChemSystems
- 25 Nov 09 17:49 Brazil's Braskem to sell sugarcane ethanol PE to Tetra Pak
- 25 Nov 09 17:44 Confidence in chemicals undermined by bullish stock forecasts
- 25 Nov 09 17:33 INSIGHT: Industry needs to maintain LRI momentum
Barbara Ortner looks at the off-beat and unusual side of chemical industry life.
ICIS Chemicals Confidential