India's Reliance to restart polyester units

05 November 2008 15:53 [Source: ICIS news]

NEW DELHI (ICIS news)--India’s Reliance Industries Limited (RIL) would restart its polyester plants at Patalganga in Maharashtra in November, the company said on Wednesday.

RIL described as “factually incorrect” a report in a local business daily saying the company had shut five of its seven petrochemical plants at the site and was planning to shift them to Nagothane, also in Maharashtra, stating it had no such plans to relocate plants.

It also clarified that its purified terephthalic acid (PTA) and linear alkyl benzene (LAB) were currently operating at full capacity at Patalganga.

RIL did not specify the capacity of its polyester staple fibre (PSF) and polyester filament yarn (PFY) plants that were expanded in 2007.

The company also produces polyester at seven other sites in India and at a few overseas sites through group companies in Malaysia and EU.

The Reliance group is the world’s largest polyester manufacturer with combined capacity of 2.5m tonnes/year.

In a recent presentation to investment analysts, the company said uncertain economic conditions could “create a temporary slowdown in consumption” of polyester, although high cotton prices in India were seen as beneficial.

The depreciation of the rupee against dollar would benefit Indian textile exports, which, in turn, would facilitate enhanced consumption of polyester.

RIL's business was primarily dollar denominated with exports accounting for about 70% of its income.

($1 = Rs47.31)

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By: Naresh Minocha
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