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Vol.26 No.7 28 April, 2011 Rs.50/-

EXPORTS OF INDIAN SYNTHETIC AND


RAYON TEXTILES SHOW POSITIVE TRENDS

E xports of Indian Synthetic and Rayon Textiles are showing encouraging trends. Exports during April – December
2010 amounted to Rs.14,791 crores (US$ 3,197 million), showing a positive growth of 8% in rupee terms (13% in DS
dollar terms) compared to the same period during 2009 – 10. Moreover, exports during December 2010 have picked up
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Product Value December 2010 December 2009 Apr-Dec 2010 Apr-Dec 2009

Rs. Crs. 1711.78 1322.39 13435.07 12484.03


Manmade Yarn, Fabrics, Made-ups
USD Mill. 378.29 282.44 2904.25 2579.88

Rs. Crs. 170.48 157.66 1356.30 1203.67


Manmade Staple Fibre
USD Mill. 37.68 33.67 293.19 248.74
Rs. Crores 1882.26 1480.05 14791.37 13687.70
Grand Total
USD Millions 415.97 316.11 3197.44 2828.62

Growth Rate (%)


Period
In Rupee Terms In US Dollar Terms

Apr-December 2010/Apr-December 2009 8.06 13.04

December 2010/December 2009 27.18 31.59

Source: DGCI&S Provisional

Commendable Efforts by Exporters


It is noteworthy that the recovery in exports has been achieved despite sharp increase in input costs, appreciation of rupee,
slow recovery of the Euro Zone, and unsettled market conditions in the middle-east/gulf countries which is the leading
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The major markets during April-December 2010 were UAE, Pakistan, Brazil, Turkey, USA, Iran, UK, Egypt, Saudi Arabia,
Germany, Afghanistan, Belgium, Italy, Mexico, Bangladesh, etc. The main products during the period were Polyester
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Target likely to be achieved


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range of 8-10% for the Financial Year 2010-11. It is also likely that the target of US$ 3700 million will be achieved for the year.
However, it may be noted that the exports of Indian MMF textiles to the leading markets, like Pakistan, Saudi Arabia,
Afghanistan, etc. are not growing as expected. Exports to some of the European leading markets like Turkey, and UK, are
also not performing well and in the same way to Egypt and other smaller markets like Libya, Bahrain, etc., which are going
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28 April, 2011 1
2 28 April, 2011
JOINT EDITOR : E. L. PAULO
1 Exports Show Positive Trends

EDITORIAL TEAM : SRIJIB ROY,


SANCTUS EPHREMS
KRIPABAR BARUAH

4 Message From The Chairman


EDITORIAL The Synthetic & Rayon Textiles
SUBSCRIPTION & Export Promotion Council
ADVERTISEMENT OFFICE : Resham Bhavan, 78 Veer Nariman Road,

5
Mumbai - 400 020.
Phone : 22048797, 22048690, 22040168 Market Reports
Fax : 22048358, 22810091, 22810076
E-mail : srtepc@vsnl.com, srtepc@srtepc.org
Website : www.synthetictextiles.org

8 Export Promotion Programmes

REGIONAL OFFICES : SURAT


The Synthetic & Rayon Textiles

9
Export Promotion Council,
Block No. 4DE, 4th Flr., Resham Bhavan, In The News
Lal Dharwaja, Surat – 395 003
Phone : 0261-242 3184
Fax : 0261-2421756
E-mail : surat@srtepc.org

NEW DELHI
The Synthetic & Rayon Textiles
16 Shipping News

Export Promotion Council,


Surya Kiran Building,
Flat No. 602, 6th Floor,

17
19, Kasturba Gandhi Marg,
New Delhi - 110 001 Peru – Emerging Market
Phone : 011-2373 3090/92
Fax : 011-2373 3091
E-mail : delhi@srtepc.org

23 RIL to implement Large Polyester Projects

Published on 14th & 28th of every month

27
ANNUAL SUBSCRIPTION: Rs.1,200/-
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28 April, 2011 3
Dear Member,
I am glad to inform you that the suspension of the Technology Upgradation Fund
Scheme (TUFS) which was imposed on 29th June, 2010 has been removed with
immediate effect. The Cabinet Committee on Economic Affairs (CCEA) has enhanced
the funds allocation under the scheme from Rs.8000 crores to Rs.15,404 crores. The
hike in allocation is to the tune of Rs.7,404 crores, out of which Rs.5,432 crores has
been earmarked to clear the dues under the TUF Scheme, while the balance amount
of Rs.1,972 crores will be provided for fresh applications. The Government has sent the
funds to the notified banks for disbursal among the industry. Further, the Scheme has
undergone marginal changes. The reimbursement rate for the spinning sector continues
to be at 4%. The value caps for Powerloom sector have been increased. Another major
highlight is the 10% capital subsidy for Shuttleless loom in addition to the 5%
reimbursement under the TUF. Second-hand Shuttleless Looms with a 10 year vintage
period will continue to get five percent interest subsidy. The relevant Notification in this
regard is being issued shortly by the Textile Commissioner.
I am glad to inform you that the Commissioner of Customs (Exports) has considered the representations of the Council with
regard to the submission of certificates under the Drawback Scheme and the submission of a Chartered Engineer certificate
under the Advance Authorization Scheme made during the Interactive Meeting held in Mumbai on 8th March 2011 and has
issued Public Notices 37/2011 dated 24th March 2011 and 40/2011 dated 28th March 2011, dispensing with the condition
of furnishing the specified ”certificates” from the Banks/Chartered Accountants separately for six months for all the shipments
under the Drawback scheme with effect from 1st January 2004 onwards and removing the requirement of providing certificates
from the Chartered Engineer for each shipment under the Advance Authorization Scheme certifying that the export goods have
been manufactured out of the inputs covered under the relevant SION. I am sure that the above decisions will certainly come
as a big relief for the exporters and will help in reducing the transaction costs.
The announcement of an updated Foreign Direct Investment (FDI) policy that simplifies joint venture norms and opens up
new areas for overseas funds, is a welcome step, that could boost the inflow of the much-needed FDI into the textile sector,
leading to better technological upgradation and cost-effective production, thus enhancing profit margins for the manufacturers
and exporters of textiles.
As you have already been informed, the fees for the membership of the Council have been revised with effect from 1st April 2011,
in accordance with the decision of the Committee of Administration of the Council. A circular containing the details in this
regard has already been mailed to all the member-exporters. The members are urged to take note of the change in membership
fees and renew their membership of the Council at the earliest to ensure that they continue to get the services of the Council
without any interruption.
The Newsletter of the Council is being revamped. Henceforth, it will be a monthly publication. We are planning to add more
features and content and I welcome constructive suggestions and feedback from the members in this regard. I am also glad
to inform you that some member-companies of the Council have already come forward to sponsor the Newsletter by way of
advertisements. I look forward to advertisement support from other members also.
With warm regards,

Yours sincerely,

VINOD KUMAR LADIA


CHAIRMAN

4 28 April, 2011
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FICCI- Ministry of Textiles-Department of Chemicals & Petrochemicals


“International Exhibition-cum-Conference on Technical Textiles”

FICCI is organizing an International “Exhibition- cum- Conference on Technical Textiles” jointly with
the Ministry of Textiles and Department of Chemicals & Petrochemicals as per the following schedule:

Time, Day & Date: 10.30 am, Thursday- Saturday, 25th-27th August 2011,

Venue Bombay Exhibition Centre, Goregaon East, Mumbai

The event is supported by ITTA (Indian Technical Textiles Association).

Thiru. Dayanidhi Maran, Hon’ble Union Minister for Textiles has been requested to inaugurate the
Conference. Smt. Rita Menon, Secretary, Ministry of Textiles has been requested to deliver the
Keynote Address.

The objective of the Conference is to look into the important global developments and emerging
trends in the technical textiles industry. The Conference would focus on various fundamental issues
like Supply Chain, Technology, Institutional Buyers, Policy Issues, Standards and identifying success
factors for Indian technical textiles industry in the dynamic global economic environment. Also, the
exhibition would have large scale international participation from countries like China and US. We
are trying for participation from other countries also like Australia, Germany, South Korea, Sweden,
Italy, UK etc.

Member-exporters interested in participating in the Conference may directly contact:


Ms Nisha Goel / Ms Shailja Garg
(Phone: 011-23708065 (Direct), 23738760-70 (Ext. 450),
)D[(PDLOQLVKDJRHO#¿FFLFRP

28 April, 2011 7
CALENDAR OF EVENTS

EXPORT PROMOTION PROGRAMMES FOR


THE YEAR 2011-12

The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) has drawn up an extensive programme of export
promotion in various markets for the year 2011-12. The programme includes exclusive Textile Exhibitions to be organized
by the Council and participation in International Textile Fairs and combined Exhibitions coordinated by various Councils.
The details of the programme for the year 2011-12 are given below:

Sr.No. Name of Exhibition / Fair Dates Remarks

1. Indian Textile Exhibition, Saudi Arabia (Riyadh & Jeddah) June 2011 Organized by SRTEPC

2. Indian Textile Exhibition, Kuwait June 2011 Organized by SRTEPC

3. 5th Dhaka International Yarn & Fabric Show 2011, 20-23 July 2011 International Fair
Bangladesh

4. Tex World Fair, New York City, USA 19-21 July 2011 International Fair

5. Indian Textile Exhibition, Malaysia August 2011 Organized by SRTEPC

6. Indian Textile Exhibition, Indonesia August 2011 Organized by SRTEPC

7. 37th Federal Trade Fair for Apparel & Textile in Moscow, 27-30 September, International Fair
Russia 2011

8. Indian Textile Exhibition / BSM in Ukraine September 2011 Organized by SRTEPC

9. Indian Textile Exhibitions at Bogota & Medellin in Colombia November 2011 Organized by SRTEPC

10. Indian Textile Exhibition at Guayaquil in Ecuador November 2011 Organized by SRTEPC

11. Tex Trends India 2012 February 2012 Combined Show of all EPCs

12. Indian Textile Exhibition, Spain March 2012 Organized by SRTEPC

As the members would notice, these programmes are being held in various thrust and new markets. The objective is to
provide existing exporters to these markets with new and wider contacts and an opportunity for new exporters to enter
these markets in a big way. The list of programmes is being sent to the members in advance so that they can have an
idea of what is in store for the entire year and choose the ones which are suitable to them.

Please note that Market Development Assistance (MDA) is available to the exporters for participation in Exhibitions/Fairs
abroad. As per the Schemes participants are eligible to receive reimbursement of expenses incurred towards participation
fee and traveling as per the prevailing terms & conditions.

7KHPHPEHUVDUHUHTXHVWHGWRUHSO\WRWKH&RXQFLOLQGLFDWLQJWKH([KLELWLRQV)DLUVZKLFKWKH\DUHLQWHUHVWHGLQE\¿OOLQJ
up the Reply Form sent to all members along with the Circular in this regard. Depending upon their interest, further details
of the Exhibitions / Fairs, like the participation fee, terms and conditions etc., will be communicated to them in due course.
„

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Attention: Members
RENEWAL OF MEMBERSHIP FOR THE YEAR 2011-2012
Please refer to the Council’s letter no: Sec/Mem/5018 dated 17th March, 2011 and the Invoice sent towards the
renewal of the Membership of the Council for the year 2011-2012. Although the renewal was due by 15th April, 2011,
it has been observed that some members have not yet paid the subscription fee so far.
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amounting to Rs.8604/- (Rs.5295/- only for S.S.I. Units) are requested to send the subscription fees to the Council
at the earliest. Please note that unless the Council receives the membership renewal fee immediately, the circulars/
publications being sent to such members will also be stopped with immediate effect.

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RI WKH HFRQRP\ LQFOXGLQJ WKH PDQPDGH WH[WLOHV ZHUHEDVHGRQIDEULFWHFKQRORJ\

18 28 April, 2011
SPECIAL ARTICLE

:HDYLQJZDVDIXQGDPHQWDODFWLYLW\IRUDOO$QGHDQ ZHQW WR 6RXWK $PHULFD LQ VHDUFK RI JROG DQG DW
SUH&ROXPELDQ FLYLOL]DWLRQV EHFDXVH FORWKHV DQG WKHLU ¿UVW PHHWLQJ WKH ,QFD RIIHUHG WKH 6SDQLVK
WH[WLOHVKDGDYDOXHLQWKHH\HVRI$QGHDQSHRSOHV FRQTXLVWDGRUHVWKHLUKLJKHVWULFKHVWH[WLOHV
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SUHFLRXV PHWDOV 7KH DUW RI ZHDYLQJ YHJHWDO ¿EHUV QDWXUDO ILEUHV OLNH ZRRO FRWWRQ HWF KRZHYHU
ZDV DOVR WKH ¿UVW PHDQV RI DUWLVWLF H[SUHVVLRQ JUDGXDOO\SURGXFWLRQRIVXFKQDWXUDO¿EUHVKDVEHHQ
LQ SUH&ROXPELDQ 3HUX LQFOXGLQJ SRWWHU\ PDNLQJ GHFOLQLQJ DQG EHFRPLQJ FRVWOLHU DQG KHQFH PDQ
DQG PHWDOZRUNLQJ ,W LV EHOLHYHG WKDW WKH 6SDQLVK PDGHWH[WLOHVDUHLQFUHDVLQJO\LQGHPDQGDQGXVH
Imports of Textile & Clothing by Peru
Imported from Imported from India’s share Share in Ranking
Ch Product world in 2009 India in 2009 in Peru’s world in world
(US$ thousand) (US$ thousand) import (%) imports (%) imports
 6LON     
51 :RRODQLPDOKDLUKRUVHKDLU\DUQDQGIDEULFWKHUHRI 9,489 94 1 0.1 69
 &RWWRQ     
53 9HJHWDEOHWH[WLOH¿EUHVQHVSDSHU\DUQZRYHQIDEULF 1,284 634 49.4 0.1 91
 0DQPDGH¿ODPHQWV     
 0DQPDGHVWDSOH¿EUHV     
56 :DGGLQJIHOWQRQZRYHQV\DUQVWZLQHFRUGDJHHWF 56,134 126 0.2 0.4 52
 &DUSHWVDQGRWKHUWH[WLOHÀRRUFRYHULQJV     
 6SHFLDOZRYHQRUWXIWHGIDEULFODFHWDSHVWU\HWF     
 ,PSUHJQDWHGFRDWHGRUODPLQDWHGWH[WLOHIDEULF   1HJ  
 .QLWWHGRUFURFKHWHGIDEULF   1HJ  
 $UWLFOHVRIDSSDUHODFFHVVRULHVNQLWRUFURFKHW     
62 $UWLFOHVRIDSSDUHODFFHVVRULHVQRWNQLWRUFURFKHW 128,843 2,288 1.8 0.1 67
63 2WKHUPDGHWH[WLOHDUWLFOHVVHWVZRUQFORWKLQJHWF 38,883 2,405 6.2 0.1 88
T O T A L 811,951 89,386

Source: compiled from UN COMTRADE statistics

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28 April, 2011 19
SPECIAL ARTICLE

Exports of Man-made Fibre Textiles from Main Items of India's Exports of


India to Peru MMF Textiles to Peru during 2009-10
Value in Rs. crores Fabrics 3RO\HVWHU9LVFRVH)DEULFV5VFURUHV
Made- %Gr/ $FU\OLF6SXQ)DEULFV5VFURUHV
Year Fabrics Yarn Fibre Total
ups Dec 3RO\HVWHU6SXQ)DEULFV5VFURUHV
 3RO\HVWHU:RRO)DEULFV5VFURUHV
2005-2006 7.55 1.23 15.48 1.53 25.79 0.51
3RO\HVWHU)LODPHQW)DEULFV5VFURUHV
2006-2007 16.02 1.31 27.33 6.49 51.15 98.33 Made-ups %XON&RQWDLQHUV5VFURUHV
2007-2008 23.95 0.96 32.79 8.99 66.69 30.38 5RSH5VFURUHV
6KDZOV6FDUYHV5VFURUHV
2008-2009 35.62 1.18 49.43 4.61 90.84 36.21
Yarn 3RO\HVWHU7H[WXUHG<DUQ5VFURUHV
2009-2010 32.03 3.06 55.24 4.98 95.31 4.92 3RO\HVWHU&RWWRQ<DUQ5VFURUHV
 9LVFRVH6SXQ<DUQ5VFURUHV
Source: DGCI&S, Kolkata  3RO\HVWHU6SXQ<DUQ5VFURUHV
Fibre 3RO\HVWHU6WDSOH)LEUH5VFURUHV

Exports of Textile & Clothing by Peru

Exported to Share in Ranking


Ch Product world in 2009 world in world
(US$ thousand) exports (%) exports

 6LON   

 :RRODQLPDOKDLUKRUVHKDLU\DUQDQGIDEULFWKHUHRI   

 &RWWRQ   

 9HJHWDEOHWH[WLOH¿EUHVQHVSDSHU\DUQZRYHQIDEULF   

 0DQPDGH¿ODPHQWV   

 0DQPDGHVWDSOH¿EUHV   

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 &DUSHWVDQGRWKHUWH[WLOHÀRRUFRYHULQJV   

 6SHFLDOZRYHQRUWXIWHGIDEULFODFHWDSHVWU\HWF   

 ,PSUHJQDWHGFRDWHGRUODPLQDWHGWH[WLOHIDEULF   

 .QLWWHGRUFURFKHWHGIDEULF   

 $UWLFOHVRIDSSDUHODFFHVVRULHVNQLWRUFURFKHW   

 $UWLFOHVRIDSSDUHODFFHVVRULHVQRWNQLWRUFURFKHW   

 2WKHUPDGHWH[WLOHDUWLFOHVVHWVZRUQFORWKLQJHWF   

T O T A L 1,504,929

Source: Compiled from UN COMTRADE Statistics

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3HUXH[SRUWHGDURXQG86PLOOLRQRIDSSDUHOV etc.

20 28 April, 2011
SPECIAL ARTICLE

Duty Structure applied by Peru on Textile and Clothing Imports originating from India
Selected Product description Total ad valorem equivalent
product codes tariff (estimated)
 6HZLQJWKUHDGRIV\QWKHWLF¿ODPHQWV 
 6HZLQJWKUHDGRIDUWL¿FLDO¿ODPHQWV 
 7H[WXUG\DUQQHVRIQ\ORQRWKSRO\DPLGHV¿!WH[V\QRWSXWXS 
 7H[WXUHGV\QWKHWLF¿ODPHQW\DUQRISRO\SURS\OHQH 
H[FOVHZLQJWKUHDGDQG\DUQSXWXSIRUUHWDLOVDOH
 7H[WXUHG\DUQRIV\QWKHWLF¿ODPHQWVQHVQRWSXWXS 
 <DUQRIV\QWKHWLF¿ODPHQWVVLQJOHXQWZLVWHGQHVQRWSXWXS 
 <DUQRIV\QWKHWLF¿ODPHQWVVLQJOH!WXUQVSHUPHWUHQHVQRWSXWXS 
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 <DUQRIYLVFRVHUD\RQ¿ODPHQWVPXOWLSOHQHVQRWSXWXS 
 0DQPDGH¿ODPHQW\DUQSXWXSIRUUHWDLOVDOH H[FOVHZLQJWKUHDG  
 :RYHQIDERIKLJKWHQDFLW\¿\DUQVRIQ\ORQRWKSRO\DPLGHVSRO\HVWHUV 
 :RYHQIDEULFV! RIWH[WXUHGSRO\HVWHU¿ODPHQWVXQEORUEOQHV 
 :RYHQIDEULFV! RIWH[WXUHGSRO\HVWHU¿ODPHQWVSULQWHGQHV 
 :RYHQIDEULFV! RIV\QWKHWLF¿ODPHQWVG\HGQHV 
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 :RYHQIDEULFVRIKLJKWHQDFLW\¿ODPHQW\DUQVRIYLVFRVHUD\RQ 
 6WDSOH¿EUHVRISRO\HVWHUVQRWFDUGHGRUFRPEHG 
 6\QWKHWLFVWDSOH¿EUHVQRWFDUGHGRUFRPEHGQHV 
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 $UWL¿FLDOVWDSOH¿EUHVRWYLVFRVHQRWFDUGHGRUFRPEHG 
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 :RYHQIDEULFVFRQWDLQLQJ! RISRO\HVWHUVWDSOH¿EUHVXQEORUEO 
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 3ODLQZHDYHSRO\HVWVWDSO¿EIDEPL[GZFRWWQPXQEO! 
 :RYHQIDEULFVRIRWKV\QVWDSOH¿EPL[GZFRWWRQ! 
551443 :RYHQIDERISRO\HVWHUVWDSOH¿EUHVPL[GZFRW!JPSWGQHV 17.00%
551449 :RYHQIDEULFVRIRWKV\QVWDSOH¿EPL[HGZFRW!JPSULQWHG 17.00%
 :RYHQIDERISRO\HVWHUVWDSOH¿EPL[GZYLVFRVHUD\RQVWDSOH¿EQHV 
 :RYHQIDEULFVRIV\QWKHWLFVWDSOH¿EUHVQHV 
 :RYHQIDEULFVFRQWDLQJ! RIDUWL¿FLDOVWDSOH¿EUHVXQEOHDFKHGEO 
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 1RQZRYHQVPDQPDGH¿ODPHQWVZHLJKLQJJP 
 1RQZRYHQVPDQPDGH¿ODPHQWVZHLJKLQJ!JP 9.00%

28 April, 2011 21
SPECIAL ARTICLE

Conclusion WKHUHLVKXJHVFRSHIRUJURZWKIRUWKH,QGLDQPDQ
7KH GHPDQG IURP WKH JDUPHQW LQGXVWU\ RI 3HUX LV PDGH WH[WLOHV LQ WKLV PDUNHW SDUWLFXODUO\ LQ \DUQ
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RIUDZPDWHULDOVDQGVHPL¿QLVKHGWH[WLOHSURGXFWV 7KH6\QWKHWLFDQG5D\RQ7H[WLOHV([SRUW3URPRWLRQ
DUH QRW VXI¿FLHQW WR PHHW LWV JURZLQJ GHPDQG DQG &RXQFLO 657(3&  PD\ RUJDQL]H ,QGLDQ 7H[WLOH
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DQGFRPSHWLQJZLWK,QGLDQH[SRUWHUVLQWKLVPDUNHW RI XQWDSSHG SRWHQWLDO IRU ,QGLDQ WH[WLOHV LQ WKH
&KLQDJHWVSULFHDGYDQWDJHLQFOXGLQJRWKHUEXVLQHVV 3HUXYLDQPDUNHWDQGWRVKRZFDVHWKHHQWLUHUDQJH
DGYDQWDJHV GXH WR LWV )UHH 7UDGH $JUHHPHQW ZLWK RI ODWHVW ,QGLDQ PDQPDGH WH[WLOHV WR WKLV PDUNHW
Peru. LQFOXGLQJ\DUQIDEULFV¿EUHHWF7KHH[KLELWLRQZLOO
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FRWWRQPDQPDGH\DUQLQFOXGLQJIDEULFVDUHZLGHO\ WRGHYHORSWKHLUEXVLQHVVZLWKWKH3HUXYLDQEX\HUV
XVHGE\3HUXYLDQJDUPHQWLQJLQGXVWU\,QGLDLVWKH DQGLPSRUWHUV7KXVDOOWKHPHPEHUH[SRUWHUVPD\
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LPSRUWV RI PDQPDGH WH[WLOHV E\ 3HUX +RZHYHU WDNHDGYDQWDJHRIWKHHYHQW

BASIC FACTS
Capital Lima
Population 0LOOLRQ
Language/s 6SDQLVK RI¿FLDO DQG4XHFKXD RI¿FLDO
Government Type &RQVWLWXWLRQDO5HSXEOLF
Administrative Divisions UHJLRQV UHJLRQHVVLQJXODUUHJLRQ DQGSURYLQFH  SURYLQFLD $PD]RQDV$QFDVK
$SXULPDF $UHTXLSD $\DFXFKR &DMDPDUFD &DOODR &XVFR +XDQFDYHOLFD +XDQXFR
,FD-XQLQ/D/LEHUWDG/DPED\HTXH/LPD/LPD /RUHWR0DGUHGH'LRV0RTXHJXD
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Chief of State 3UHVLGHQW$ODQ*$5&,$3HUH]
Head of Government 3UHVLGHQW$ODQ*$5&,$3HUH]
Cabinet &RXQFLORI0LQLVWHUVDSSRLQWHGE\WKHSUHVLGHQW
Elections 3UHVLGHQWHOHFWHGE\SRSXODUYRWHIRUD¿YH\HDUWHUP
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Industrial Production Growth Rate 8.5%
Exports ELOOLRQ HVW
Export Commodities &RSSHUJROG]LQFWLQLURQRUHPRO\EGHQXPFUXGHSHWUROHXPDQGSHWUROHXPSURGXFWV
QDWXUDOJDVDVSDUDJXVDQGRWKHUYHJHWDEOHVIUXLWDSSDUHODQGWH[WLOHV¿VKPHDO
Export Partner Countries 86  &KLQD  6ZLW]HUODQG  &DQDGD  -DSDQ 
Imports 86ELOOLRQ HVW
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 -DSDQ 

22 28 April, 2011
SPECIAL ARTICLE

RELIANCE INDUSTRIES COMMENCES


IMPLEMENTATION OF LARGE POLYESTER
PROJECTS IN INDIA
The Reliance Group, founded by Mr. Dhirubhai H. Ambani products like Polyester Filament Yarn (PFY) and Polyester
(1932-2002), and India's largest private sector enterprise, Staple Fibre (PSF). It is expected that polyester will capture
with businesses in the energy and materials value chain, DURXQGRILQFUHPHQWDOJOREDO¿EUHGHPDQGRIDURXQG
has commenced the implementation of its planned world 2.9 million tons per annum over the medium to long term.
scale projects in India across the polyester chain. The demand for Polyethylene Terephthalate (PET), which
is already India’s fastest growing polymer, is also poised
for exponential growth due to continued demand in the
bottling, packaging and food & beverages sectors. With its
strong manufacturing presence in India & Malaysia, cost
leadership position and wide product range, Reliance is
XQLTXHO\SRVLWLRQHGWREHQH¿WIURPWKLVPDUNHWJURZWK
RIL has planned its capacity expansion in phases over the
next few years. This includes:
‡ $SODQQHGFDSDFLW\RIPLOOLRQWRQVRI37$DW
'DKHM ZLWK WKH DELOLW\ WR LQFUHDVH LW E\ DQRWKHU
PLOOLRQWRQVRI37$DWDODWHUVWDJH7KHVH
SODQWV ZLOO EH LQWHJUDWHG ZLWK WKH 3DUD[\OHQH
SODQWV DW -DPQDJDU IRU UDZ PDWHULDO DQG ZLOO
LQ WXUQ FDWHU WR WKH QHZ SRO\HVWHU SODQWV EHLQJ
FRQVWUXFWHGVLPXOWDQHRXVO\
‡  WRQV RI 3)< DQG  WRQV RI
3RO\HVWHU7H[WXULVHG<DUQDW6LOYDVVD
This is RIL’s largest capacity expansion in the sector and
‡ WRQVRI3(7DW'DKHMZLWKWKHRSWLRQWR
is aimed at consolidating its position as the world’s largest
DGG  WRQV RI 3(7 DW WKH VDPH ORFDWLRQ
integrated polyester producer. These investments in new
DWDODWHUVWDJH
polyester capacity will also strengthen India’s position as a
JOREDOPDQXIDFWXULQJKXEIRUWH[WLOHVDQG¿EUH ‡ WRQVRI36)DW'DKHM
The Group's annual revenues are in excess of US$ 44
ELOOLRQ7KHÀDJVKLSFRPSDQ\5HOLDQFH,QGXVWULHV/LPLWHG
is a Fortune Global 500 company and is the largest private
VHFWRU FRPSDQ\ LQ ,QGLD 5,/ LV WKH ¿UVW SULYDWH VHFWRU
company from India to feature in the Fortune Global 500
list of 'World's Largest Corporations' and ranks 100th
DPRQJVWWKHZRUOG
VWRSFRPSDQLHVLQWHUPVRISUR¿WV
RIL ranks 68th in the Financial Times FT Global 500
list of the world's largest companies. RIL is rated as the
15th ‘Most Innovative Company' in the world in a survey
FRQGXFWHGE\WKH86¿QDQFLDOSXEOLFDWLRQ±%XVLQHVV:HHN
in collaboration with the Boston Consulting Group.

The global supply constraints, substantial price increase


and uncertain outlook for cotton availability is creating
considerable substitution opportunities for polyester

28 April, 2011 23
SPECIAL ARTICLE

‡ 7KHVH SODQWV ZLOO EH LQWHJUDWHG ZLWK 5HOLDQFH¶V spinners, weavers, knitters and downstream to help
FDSWLYH 3XUL¿HG 7HUHSKWKDOLF $FLG 37$  DQG them compete in the international market. In line with
0RQR(WK\OHQH*O\FRO 0(*  these efforts, Reliance has maintained its prime focus
on specialty products – 56% of PSF production and 32%
of PFY production represent niche products. With the
integration of Hualon Malaysia, Reliance now has the most
GLYHUVL¿HGSRUWIROLRLQSRO\HVWHUDFURVVFRPPRGLW\VSHFLDOW\
and niche products. Nylon & PC, PV & Cotton Yarns
are available from Reliance’s Malaysian plant – Recron*
Malaysia Sdn. Bhd. as well.

Equipped with Asia’s economies of scale and Indian design


sensibilities, Reliance offers unmatched competitiveness
LQ ¿EUHV \DUQV DQG RWKHU VSHFLDOW\ SURGXFWV 7KHVH ¿QG
applications in a wide range of industries including apparel,
home furnishings, automotive, medical, industrial, etc.

Recron® Staple Fibres


Reliance is one of the largest producers of Polyester
Staple Fibre in the world. Its innovative approach and
All the above projects are under various stages of ability to offer a complete range of products for a variety
implementation ranging from technology licensing, basic of applications, on time and at the right price has given it
engineering and obtaining the necessary regulatory a leading market position in the country and a preferred
approvals. This capacity addition will further strengthen vendor status with the world's leading consumers of textiles.
Reliance’s leadership position in the polyester sector.
Backward vertical integration has been the corner-stone Recron® Staple Fibre is available in both Fibre and Tow
of the evolution and growth of Reliance. Starting with forms and is procurable even in the remotest locations
textiles in the late seventies, Reliance pursued a strategy WKURXJKLWVYDVWQHWZRUNRIRI¿FHVDQGDJHQWV
of backward vertical integration – in polyester, fibre
With a majority share in the Indian market, Reliance
LQWHUPHGLDWHVSODVWLFVSHWURFKHPLFDOVSHWUROHXPUH¿QLQJ
offers a wide range of Recron® Staple Fibres. The product
and oil and gas exploration and production – to be fully
integrated along the materials and energy value chain. portfolio has been designed, keeping in mind the demands
and different requirements of its customers. Based on the
The Group's activities span exploration and production process undertaken, a variety of products are available in
of oil and gas, petroleum refining and marketing, semi-dull, bright and optically white types etc. Reliance also
SHWURFKHPLFDOV SRO\HVWHU¿EUHLQWHUPHGLDWHVSODVWLFVDQG SURGXFHV¿EUHVIRU¿OOLQJDQGQRQZRYHQDSSOLFDWLRQV
chemicals), textiles, retail and special economic zones.
Reliance enjoys global leadership in its businesses, being
WKH ODUJHVW 3RO\HVWHU \DUQ DQG ¿EUH SURGXFHU LQ WKH ZRUOG
DQG DPRQJ WKH WRS ¿YH WR WHQ SURGXFHUV LQ WKH ZRUOG LQ
major petrochemical products.
Reliance Polyesters
Reliance Polyester has a combined global capacity
of approximately 2.5 million tons per year. It enjoys a
domestic market share of more than 50% in PFY, PSF and
PET and manufactures and markets its entire Polyester
Fibres & Yarns product range under the Recron® brand
and PET products under the brand name of Relpet®
Reliance endeavours to make available many innovative
products and trends from across the globe to Indian

24 28 April, 2011
SPECIAL ARTICLE

Recron® )LEUH¿OO LV ,QGLD


V SUHPLXP KROORZ ¿EUH VSHFLDOO\ same time catering to the growing demands of world's
GHVLJQHG IRU ¿OOLQJ DQG LQVXODWLRQ SXUSRVH 0DGH ZLWK biggest texturizers. In addition to the normal commodity
WHFKQRORJ\IURP'X3RQW86$5HFURQ)LEUH¿OODGKHUHVWR yarns, Reliance also manufactures a wide variety of
world-class quality standards to provide maximum comfort, differentiated and customized products, such as Anti-
durability, and ease of use in a wide variety of applications, microbial, fire-retardant, stretch, bi-component, micro-
like sleep products, winter garments and furniture. Its Filament, super bright and other specially tailored products.
VSHFLDO PDQXIDFWXULQJ WHFKQRORJ\ HQVXUHV EHWWHU ¿OOLQJ
SRZHUDQGJUHDWHUVRIWQHVVWKDQFRWWRQDQGRWKHU¿EUHVRI Reliance is also a leading innovator and producer of hi-
equivalent weight. quality textured yarns. Consistently pushing the boundaries
of comfort and luxury, its products help in creating some of
Recron® 3s is a state of art reinforcing material, which WKH ¿QHVW IDEULFV WKDW GH¿QH IDVKLRQ DURXQG WKH ZRUOG IRU
is used to increase strength in a variety of applications, the very best in apparel and non-apparel end-use.
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cement sheets, cement based pre-cast products and for Promoting Value-addition in Downstream
improving the quality of construction. A product of extensive Industry
R & D in Reliance's state-of-the-art Technology Centre, Reliance has constantly consolidated its position in
Recron® 3s is made available when you need it and where the polyester business on the strength of its integrated
you need it through its vast distribution network. RSHUDWLRQV HFRQRPLHV RI VFDOH DQG GLYHUVL¿HG SURGXFW
range. Grass-root investments in R&D have helped
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Reliance develop new advanced range of specialty
from Reliance, Recron® 1RQZRYHQ JUDGH VWDSOH ¿EUHV
polyester products (like Recron® FeelFresh, Recron® FR,
are engineered with utmost care to ensure optimum
Recron® Green, Recron® Cotluk, Recron® Stretch, Recron®
performance in a variety of non-woven processes. They
LP, Recron® Recrobulk etc.) with unique attributes of
are designed keeping in mind the needs of high production
global standards, customized for weaving and knitting
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applications.
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differentiated products, with major markets in the apparel, in India in the face of free imports, bear testimony to the
automotive, home fashion and industrial fabric, under the international quality of its products.
brand name of "RECRON®".
Given the global consumption of polyesters in high growth
Reliance POY division employs state-of-the-art technologies segments like geo-textiles, medical and hygiene textiles,
from the best global technology suppliers including Dupont building textiles etc., Reliance is now increasingly gearing
(USA), TORAY (Japan), Inventa (Switzerland), Salmoiraghi up to support its customers to capture the global as well
(Italy), Ishikawa, Zinser & Himson etc. the domestic market shares in all these applications. With
new investments in upstream as well as downstream
Reliance is one of the few companies in the world to have Polyester capacities, Reliance is now poised to implement
a totally computerized and automated Polyester Yarn its customer-oriented policies and marketing philosophy
package handling and testing system. Thereby, bettering even further.
standards set by the technology suppliers, and, at the „

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Edited and Published by Ms. Smita Gate, IAS, for The Synthetic & Rayon Textiles Export Promotion Council, Resham Bhavan,
78, Veer Nariman Road, Mumbai - 400 020 and Printed by her at Kukreja Arts, Mumbai.
30 28 April, 2011
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