Dominance of Reliance industry on polyester market seems to be challenged by Bombay Dyeing as the latter has suspended chemical manufacturing at its Patalganga unit, wishing to start production of Polyester Staple Fibre (PSF).
The present unit produces Di-Methyl Terephthalate (DMT) and in the third quarter this year, is going to manufacture 165,000 ton PSF.
Though, DMT unit has the share of 64 percent in Bombay Dyeing's total revenues of Rs1100 crore in FY ended March 2005, company foresees limited opportunity for the input.
Company considers DMT production as a cyclical industry and hence, took this decision.
However, company also wants to cash on incentives declared in the recent Union Budget, which announced 5 percent import duty reduction on raw materials such as DMT, Purefied Terpthalic Acid (PTA) and Mono Ethylene Glycol (MEG) and 2 percent on Paraxylene.
Excise duty has been reduced on all man-made fibre yarns and filament yarns from 16 percent to 8 percent, and the move will help the company.
Moreover, import duty on all man-made fibres and yarns were also reduced from 15 to 10 percent.
marketing@alchempro.com
