Reliance Industries Ltd's (RIL) capacity expansion of polyester yarn and fibre to half a million tons at its Patalganga and Hazira complex, would complete in a couple of weeks time.
The resultant manufacturing capacity increase would go up to 2 million tons per annum (mtpa), exceeding Taiwan's and equalling North and South America's total production, informed Subodh P Sapra, President RIL's polyester sector.
Increased production of polyester fibre and yarn would create imbalance in demand and supply position in domestic market, sources infer.
Presently, demand for polyester yarn and fibre in the country is 1.9 mtpa, whereas supply exceeds much more, said an unnamed RIL official.
The world's largest polyester fibre and yarn producer has been expanding both, organically and inorganically.
Sapra said the company had an open mind on further acquisition of overseas companies.
RIL had acquired Frankfurt-based polyester fibre and yarn firm, Trevira GmbH, about a year back.
Domestic demand is later on expected to climb as downstream textile industry goes in for expansion to take advantage of the non-quota regime, say industry insiders.
marketing@alchempro.com
